SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.
The Consumer Price Index (CPI) experienced a 0.1% decline month-over-month in June, marking its first monthly decrease in over four years. Despite this, prices continued to rise annually, showing a 3.0% increase year-over-year, though this was a slowdown from May’s 3.3% increase. The drop in gasoline prices contributed significantly to the overall price reduction, while increases in food and shelter prices were more moderate.
Core-CPI, which excludes volatile food and energy prices, rose by 0.1% from May. Annually, core prices increased by 3.3%, the slowest pace since April 2021. The Federal Reserve’s June policy meeting minutes revealed that while inflation is trending positively, officials require more consistent data before considering rate cuts. There was notable disagreement among policymakers, with some advocating for potential rate hikes to manage inflation expectations, while others emphasized readiness for unexpected economic weaknesses.
In the commercial real estate sector, Altus Group’s quarterly survey indicated a slight rise in recession concerns but also improved income growth expectations and reduced distress over the next year. Financing costs are expected to rise marginally, with a mixed outlook on capital availability. Meanwhile, the US labor market added 206,000 jobs in June, beating forecasts, though the unemployment rate rose to 4.1%, the highest since October 2021, signaling a complex economic environment for the Federal Reserve’s future decisions.
Click below to keep reading about the latest updates including consumer confidence, the June Jobs Report, business optimism, and more!
