Economists expected the consumer savings reaped at the gas pump to translate into higher discretionary spending and boost the economy as much as 3 percent. Contrary to those predictions, retail sales fell 0.8 percent in January after declining 0.9 percent in December. Despite this decline, with steady increases in employment and rising wages, the consumer is well-positioned to drive economic expansion, according to the April edition of "the BRIEFING," a report compiled by Transwestern that covers the national and global economy, capital markets and commercial real estate. 

NATIONAL ECONOMY

• Overall average gross domestic product (GDP) growth for 2014 was 2.4 percent, up slightly from average growth rate of 2.2 percent in 2010 through 2013 
• 295,000 jobs added in February 
• Unemployment dropped slightly to 5.5 percent in February 
• February Labor force participation grew to 62.0 percent, up 20 basis points 
• Average hourly wages grew 0.5 percent in January, the largest increase since September 2008
• Consumer Price Index fell 0.1 percent in January 
• Factory orders down 0.2 percent in January, on top of declining 3.5 percent in December and 1.7 percent in November 
• Crude oil dipped as low as $43.88 on Nymex, a six-year low, amid fears of easing Iranian sanctions

GLOBAL ECONOMY

• Total global debt has reached $199 trillion, up nearly $60 trillion since 2007 
• European Central Bank launched a stimulus program to buy 60 billion euros in bonds a month for a total of 1.1 trillion euros
• Eurozone grew 0.3 percent in fourth quarter, with annual growth at 1.4 percent 
• German 10-year bond yields dropped to 0.18 percent, while five-year bond yields were negative for the first time in history 
• Greece's GDP is down by 25 percent, and its bailout is being extended by four months

CAPITAL MARKETS

• Strengthening dollar is wreaking havoc on U.S. exports and dramatically lowering the cost of imports 
• 31 major banks passed the stress test – Goldman Sachs and Zions had the smallest cushion, while Deutsche Bank and Banco Santander failed the test 
• FDIC fourth-quarter 2014 banking profile shows slowing profits despite increased revenues

COMMERCIAL REAL ESTATE

• 2014 total sales hit $351 billion, a 15.5 percent increase over 2013, with volume returning to 2006 levels 
• Prices showed healthy growth of 13 percent and, on average, have surpassed the 2007 peak 
• U.S. industrial vacancy dropped to 6.8 percent at year-end 2014, the lowest rate in 14 years 
• An estimated 70 percent of local government tax revenue comes from real estate 
• Real Estate Investment Trusts (REITs) lead other industry groups with 28 percent total return in 2014, with apartment REITs providing total returns of 39.7 percent 
• REITs have issued $12.5 billion on new and follow-on offerings 
• Last year saw 52.7 million square feet of office absorption with only 27.3 million square feet of completed developments 
• Commercial mortgage-backed securities delinquency rate fell to five-year low 

More information can be found in Transwestern's April issue of "the BRIEFING." Download the full report at: http://twurls.com/briefing0415