The Commerce Department reported Friday that consumer spending edged up just 0.2% in October, weakest showing since a similar increase in June. And individual incomes grew just 0.2%, poorest showing in six months.
A separate Commerce report showed that construction spending fell 0.8% last month, biggest decline since July. Activity in the besieged housing industry fell for a 20th straight month while non-residential construction also weakened.
The figures on consumer spending and construction raised new worries about spreading economic weakness caused by the steepest slump in housing in more than 20 years and a widening credit crisis triggered by rising mortgage defaults. Consumers are also being battered by surging prices for gasoline and other energy.
You can see the story here and the Commerce Department release here.
London Analyst Says There’s a CRE Bubble
by David Bodamer November 30th, 2007
While it’s generally accepted that residential real estate experienced a massive bubble, few have argued that commercial real estate’s seven-year bull run had lost touch with reality. But now a London analyst–based on looking at commercial real estate derivatives is saying just that.
There’s been a lot of stories about various commercial real estate indices of late. S&P updated its indices through August this week, which showed values still rising. The Moody’s/MIT index, meanwhile, showed a decline. And deal volume has dropped off significantly.
(Spotted at Mish’s Global Economic Trend Analysis.)
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