NEW LABOR MARKET DATA STRENGTHENS LIKELIHOOD OF SOFT LANDING
Labor Market Growing, But At Subdued Pace
- The U.S. is on pace to add more than 2 million jobs in 2023, a slower rate than last year
- Slowed employment growth will help keep wage growth in-line, aiding the Fed’s inflation fight
CRE Outlook Boosted If Soft Landing Achieved
- CRE absorption is strong during periods with this year’s level of job creation
- A soft landing would diminish upward pressure on interest rates, while raising consumer and business confidence, tailwinds for CRE demand and investment
Federal Reserve Actions To Drive Economic Outlook
- The question is, will wage growth and inflation fall quick enough for interest rates to stop rising in 2023
- Wall Street does not expect a rate hike at the next Fed meeting, but is split on the outlook for EOY 2023
*Sources: Marcus & Millichap Research Services, BLS
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