Page 32 - midJersey Business - March 2015

NJ BUSINESS REPORT
●

he MIDJersey Chamber of Commerce releases a sea-

sonal economic bulletin that portrays economic in-

formation about Central New Jersey, in comparison

to New Jersey and the United States. The economic
statistics are compiled from carefully selected

sources, such as the Bureau of Economic Analysis,

TBureau of Labor Statistics, and U.S. Census Bureau.

The data for the second quarter (QII) of 2014 indicate improve-

ment and should spur optimism. The unemployment rate contin-
ued to abate; personal income, personal consumption expendi-

tures, and inflation were either stable or increased; and business

movement was encouraging. Grainger announced a Central New

Jersey expansion; Amazon opened the doors to its Robbinsville

distribution center; and Frontier Airlines expanded its reach to 17
destinations from Trenton-Mercer Airport, its East Coast hub.

Overall, the economy has rebounded with vigor.

●
ment rate was 5.7 percent in QII. This Inlation is deined as the increase
UNEMPLOYMENT RATE
The national unemployment rate de- number includes the counties of Burling- in price level of goods or services over

clined to 6.1 percent by the end of the ton, Hunterdon, Mercer, Middlesex, Mon- time. A healthy inlation rate for any
quarter. This is the lowest rate in nearly mouth, Ocean, and Somerset. Hunterdon developed economy is typically between

six years. The number of unemployed continues to have the lowest rate of any 2 to 3 percent; anything above this rate
people has dropped sharply over the last of the 21 counties in the state.
would reduce purchasing power and

year, as hiring has ticked up and the job lessen demand.
market continues to expand. The amount ●For QII, the calculated rate was 2 per-
CONSUMER SPENDING
of jobless claims has diminished to levels Consumer spending, or consumer de- cent for April and 2.1 percent in May and
not seen since before the 2008 recession. mand, inluences how prices for con- June. This is the coveted rate. For the

Certain sectors of the economy, spe- sumer goods change over time. Modest Central New Jersey counties mentioned
ciically construction and service-based demand will not drastically increase the above, the inlation level was stable and

seasonal employment, exhibited a strong price of consumer goods. On the other consistent with demand.
rebound over the quarter.
hand, a spike in demand usually results

The New Jersey unemployment rate in a steady, rapid increase in consumer ●
receded throughout the QII months.
prices. According to the Bureau of Eco- BUSINESS MOVEMENT
Business movement, speciically in the

As QI closed, the rate was 7.2 percent, nomic Analysis, personal consumption ofice and industrial markets, was moder-

which left some people ambivalent about expenditures (PCE) for the entire Untied ate in QII. The Central New Jersey ofice
the job market. From March to April, the States rose 0.2 percent in April, 0.3 vacancy rate lowered to 16 percent.

employment rate plummeted a robust 0.3 percent in May, and 0.4 percent in June. This mirrors the overall igure for the
percentage points to 6.9 percent. This is During the same period, personal income Northeast but falls shy of the U.S. ofice

a very signiicant igure to depict. In May, increased 0.4 percent in April and 0.5 vacancy rate of 15.1 percent for the quar-
the rate diminished to 6.8 percent and to percent in both May and June. The rise ter. The Central New Jersey ofice market

6.6 percent in June. Over the quarter, the in personal income and PCE, combined experienced a positive net absorption of
labor force expanded and the number of with other factors, contributed to a 4.2 110,100 square feet over the quarter. The

unemployed abated in the Garden State. percent rise in the real gross domestic average asking rent jumped 0.6 percent
Hiring in the private sector was a central product—output of goods and services— to $26.55, thus demonstrating a height-

reason for much of this success.
for QII. This is a substantial improve- ened demand for space. By comparison,
The Central New Jersey unemploy-
ment from QI production.
the average U.S. asking rent was $22.31,

business
30 midJersey