Another month, another mixed set of economic data.
GDP growth for the last quarter was reported at a robust 3.8%. Growth in personal disposable income slowed to 2.8 percent from 4.9 percent. The University of Michigan reports that consumer confidence has hit a 2 year low. Perhaps the most comprehensive round up of the goings on is at MarketWatch.
In addition, oil finished the day below $60/barrel, at a low not seen since July 27th. Unleaded gasoline futures for early December delivery also fell $0.08 to $1.59. I honestly don’t know what this means. I know that gas prices have been receding drastically, despite local retailers trying to claim extra profits where possible. Virginiagasprices.com tells me the lowest prices in the area are at $2.19. The lowest I saw in my recent jaunt to Clemson was $2.39 at two isolated stations along US 29. Minus additional natural disasters, and plus some continued conservation, methinks we could settle below $2.00 in short order. Whether Joe Consumer will agree is yet to be seen.
CNN/Money also report on “The $25 trillion land grab — Ten megapolitans are poised for a boom that, by 2030, will dwarf America’s post WWII buildout.” It’s interesting reading, but the “megapolitan” areas are so large that they just essentially cover the majority of economic development areas in the country. For example, the I-85 Corridor:
The 410-mile stretch from Atlanta to Raleigh is fast becoming a contiguous strip of McMansions and McDonald’s. As textile manufacturing fades, consumer banking in Charlotte, telecom in Atlanta and high-tech in the Raleigh-Durham Research Triangle drive the growth.
Key demographic shift: Elsewhere, Latino arrivals join already thriving communities. Here they’ll be building neighborhoods from scratch.
New growth industry: Food and nutrition-product startups emerging from a planned $1 billion biotech research hub outside Charlotte.
Best business to start: Distribution firms to handle the inflow of Chinese imports via Savannah and other regional ports; home-health-care centers catering to seniors.
Best residential real estate bet: A $215,000, two-bedroom home in Fieldstone, and up-and-coming neighborhood in north Durham.
Best commercial real estate bet: Parcels along I-85 in rural North Carolina that will become part of a planned tech-research park to support the Research Triangle.
Government carrot: Long-term tax perks for new industrial tenants like Dell.
It’s already too late to… Buy a teardown in Atlanta’s Midtown West neighborhood and build a dream home close to downtown. Big developers are already moving in.
Walmart is the biggest employer in the U.S. (YIKES)
They beat out the government? If so that is indeed shocking.