Thursday, October 15, 2015

Friday: Industrial Production, Jobs Openings, Consumer Sentiment

by Bill McBride on 10/15/2015 09:01:00 PM

Commercial real estate prices are increasing significantly, from CoStar: CCRSI: Commercial Property Price Growth Continued To Heat Up In August

While construction is rising in many markets, aggregate demand across the major property types continues to outstrip supply, resulting in tighter vacancy rates and rent growth, which in turn, continues to drive strong investor interest in commercial real estate. In August 2015, the two broadest measures of aggregate pricing for commercial properties within the CCRSI—the value-weighted U.S. Composite Index and the equal-weighted U.S. Composite Index—increased by 1.3% and 1%, respectively, and 12.6% and 11.4%, respectively, in the 12 months ended August 2015.
These are repeat sales indexes - like Case-Shiller for residential - but this is based on far fewer pairs.

Friday:
• At 9:15 AM ET, the Fed will release Industrial Production and Capacity Utilization for September. The consensus is for a 0.3% decrease in Industrial Production, and for Capacity Utilization to decrease to 77.4%.

• At 10:00 AM, Job Openings and Labor Turnover Survey for August from the BLS. Jobs openings increased in July to 5.753 million from 5.323 million in June. The number of job openings were up 22% year-over-year, and Quits were up 6% year-over-year.

• Also at 10:00 AM, the University of Michigan's Consumer sentiment index (preliminary for October). The consensus is for a reading of 89.5, up from 87.2 in September.