Economic Summary for the Week Ending 1/18/2013

Most of the data released last week was encouraging. Housing starts were up 28% annuallyindustrial building mesa az in 2012 , a strong increase. Other positive reports: retail sales in December were stronger than expected, industrial production increased, and weekly unemployment claims fell sharply.

On the negative side, was consumer sentiment, probably being impacted by the payroll tax increase. But it now appears that Congress will pay the bills, so consumer sentiment will probably improve.

Since residential investment and housing starts are usually a leading indicator for economy, this suggests the economy will continue to grow over the next couple of years.

It’s been reported that, retail sales are up 25.4% from the bottom, and now 9.7% above the pre-recession peak (not inflation adjusted)

The Department of Labor reported: “In the week ending January 12, the advance figure for seasonally adjusted initial claims was 335,000, a decrease of 37,000 from the previous week’s revised figure of 372,000. The 4-week moving average was 359,250, a decrease of 6,750 from the previous week’s revised average of 366,000.”

In terms of commercial real estate, some retailers appear to be back in expansion mode
The value teen apparel chain Rue21, says if plans to open 100 new stores this year. Best Buy says it plans to eventually have 1,000 mobile stores across the US, up from the 77 it currently operates. The retailer is reportedly opening the stores in enclosed malls.

Right now Best Buy says it controls about 4% of the total US mobile phone market. Last summer Best Buy’s CEO said that his company expects to increase that number to 15%, and it looks like the retailer is well on its way.

We don’t see consumer interest for these products going away any time soon, and Best Buy is likely to get some pretty good deals on rent. Is this ramp up a good move for the company?

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This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared

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