Grubb & Ellis Montana Commercial, LLC

Contributions to % Change in GDP Seasonally Adjusted Annual Rate

Gross domestic product expanded at an annualized rate of 3.2 percent in the first quarter according to the advance estimate from the Bureau of Economic Analysis, down from 5.6 percent in the fourth quarter of 2009. Consumer spending picked up, contributing 2.6 percentage points of the first quarter growth as consumers came out of their bunkers. Inventories accounted for 1.6 points as businesses cautiously restocked after the massive depletion of inventories in the first half of last year. Investment in equipment remained strong with businesses ramping up their capital spending, but investment in structures slipped again due to the overhang of space in commercial real estate. Trade, government and homebuilding subtracted from growth. Expect GDP to moderate in the next two or three quarters; consumer spending is unlikely to ramp up quickly, the boost from the stimulus is fading, the swing in inventories will level out while state and local governments will remain under intense pressure to cut spending. Employment growth is expected to gain momentum as the year progresses, which will put the recovery on a more sustainable path. Source: Bureau of Economic Analysis, Grubb & Ellis

May 4, 2010

Bob Bach is our Senior Vice President, Chief Economist

A local friend of ours introduced us to a website that has myrtle beach golf packages. With this site you can book golfing and lodging and get great discounts. Hopefully we can head over there before the weather gets too cold.  There are 100’s of golf courses in the myrtle beach area to chose from

Might be a great place for a sales meeting coming soon!

Click to talk about the Ramada

Six-Pack of Good News

1. The Conference Board’s index of leading indicators increased 0.7 percent in June, its third consecutive monthly gain and the sharpest three-month rise since 2003. The index is a weighted average of 10 key variables designed to forecast economic conditions six to nine months in advance. The latest reading is a clear sign that the recession is drawing to a close.
2. Dismal Scientist, part of Moody’s Economy.com, identified 23 metro areas where the recession is moderating. Click here to view the list and read the article.
3. The Dow Jones Industrial Average ended yesterday above 9000 for the first time since early January thanks in part to a $2.3 billion quarterly profit reported by Ford Motor Company. Although the profit was attributable to debt restructuring, Ford stock rose 9.4 percent on the news.
4. Existing home sales rose 3.6 percent in June, the third consecutive monthly increase and the longest string of gains since 2004. Condo sales increased by 14 percent while single-family sales gained 2.5 percent.
5. Last month Goldman Sachs repaid the $10 billion it received in TARP funds, and now the company has paid $1.1 billion to repurchase the stock warrants issued to the U.S. Treasury. Taxpayers made an annualized return of 23 percent. Click here to read an article from The Associated Press.
6. THE RECESSION IS OVER… in Canada, reports the Bank of Canada. Click here to read the article in The Globe and Mail.

Robert Bach

SVP, Chief Economist

Grubb & Ellis