April’s employment report showed continued strength of the U.S. economy. Importantly, hiring was robust and accompanied by solid but non-accelerating wage growth. This will continue to give the Fed breathing room when formulating policy. It is also worth noting that productivity gains—important to maintain wage growth while keeping inflation in check—were considerably strong for the first quarter of 2019, which, if continued, would be a very positive indicator for the U.S. economy.
Overall, CBRE maintains its view that the U.S. economy remains on track for continued growth, with an even better outlook for the second half of the year. This growth will broadly continue to support real estate market fundamentals and investment activity across property types.