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MID-SEPTEMBER ECONOMIC UPDATE

Written by: Cade Polter

What’s in the News

The United States’ inflation rate, which had seemingly settled, has now increased for the second straight month up to 3.7%. The producer price index has risen by 0.7 percent in August, almost double the expected 0.4 percent increase. British chipmaker, Arm debuted in the New York Nasdaq stock exchange and saw its share price rise 25% within the first day. Arm is the largest initial public offering to release since Rivian in November of 2021.


What's Next for CRE

The return to office continues, as many offices are requiring employees to come into the office at least three days per week. A survey from Redfin showed that near 10 % of people selling their houses are relocating to adjust to the return-to-work push. Seemingly all news about the office sector has been negative, but finally here is a positive. Large companies like Google, Amazon, and Meta are all aiming towards the return to office. Knowing that some of the biggest companies are heading back to the office is encouraging for all parts of the office sector to believe in a comeback from what has been a rough few months.

Looking Ahead

Yet again the Federal Reserve is set to meet to discuss rate hikes. While the rates have been paused for a while, with growing inflation it will not be a surprise to see the Fed raise interest rates yet again. The United States’ rate hikes have been aggressive to combat inflation, but China has been relatively laxed in their monetary policy. Recently, China has hit a bump in the road in their economy with real estate. They surprised the rest of the world announcing a cut to the amount of cash that their banks are required to have on hand. This may be the first of many monetary policy changes that we will watch closely over the next few months.


Sources: Globe St, WSJ, Federal Reserve.

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