Economics and The Market
As per the latest edition of TOWN Economics at a Glance, The New York State Department of Labor updated the employment statistics for May to reflect that New York City experienced a combined jobs increase of 1.9% in the private and government sectors. Statewide the official seasonally adjusted unemployment rate remained at 6.7% while the New York City unemployment rate also remained steady at 7.9%.
Year-over-year, manufacturing, government and financial activities sectors all shed jobs, while the primary industries contributing to job growth were educational & health services, professional & business services as well as trade transportation & utilities. The S&P 500 fluctuated above the 1,900 mark and the 30-Year Fixed Rate Mortgage decreased slightly to approximately 4.17%. The Federal Reserve has continued incremental reductions in its current bond buying strategy as planned, facilitating a gradual tapering of the quantitative easing policies. It should be interesting to see the interplay between interest rates and asset prices through 2014.
*The following chart demonstrates fluctuations in the S&P 500 Stock Index as well as the 30-Year FRM on a
weekly basis from 2010 through June 2014:
Another important indicator for the state of the economy is the number of building permits. For the month of
April there were 2,255 building permits issued in Manhattan YTD, a significant increase from the same period in
2013, however still not at pre-recession levels.
While the economy has been growing at a rate that is slower than desired, it has shown signs of improvement in
numerous sectors including residential real estate. Simultaneously, recent Census reports posted by the United
States Department of Commerce suggest that the most recent privately owned housing starts have increased
*The following graph depicts the number of building permits issued on a monthly basis alongside the New York
City unemployment rate on a monthly basis from January 1996 through April 2014 covering several periods of
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