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Issues and events that shape Long Island's economic and legislative landscape.

Wednesday, October 1, 2014

LIA Monthly Economic Report: May 2014

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The labor market picture has continued to improve, with steady jobs growth in March and substantial upward revisions in January and February jobs estimates.  Retail sales also showed signs of strength.  While consumer confidence about current economic conditions fell slightly, they remain optimistic about the economy going forward.  But the housing market remains an area of concern.  Sales of existing homes remained sluggish while new home sales fell sharply.  Moreover, real GDP growth was just 0.1 percent in the first quarter of 2014.  While this may reflect severe weather conditions,  it may also signal that the recovery is losing momentum. 

Although its bond buying program will likely continue to scale back, the Federal Reserve remains committed to keeping interest rates very low until unemployment rate declines significantly, in the range of 5.2% - 5.6%.  So the Fed''s monetary policy should continue to promote economic and jobs growth for the foreseeable future.

Click here to view the complete report.