New Jersey Economy To Slow

From the APP:
Anemic economy forecast for N.J.

Rising unemployment, a slowdown in the housing market and declining business for vendors could add up to an anemic economy for New Jersey in the coming months, according to the latest data from the Federal Reserve Bank of Philadelphia.

The regional bank’s latest forecast for the Garden State, issued Friday, pegs economic growth through early next year at just 0.4 percent, a precipitous drop from the bank’s last two forecasts of modest growth.

Economist Ted Crone, a vice president at the bank, said the drop “could be just a little blip.”

“I would want to have a couple more months’ data before we go out onto a limb” by predicting much slower growth, he said.

The prior two forecasts were for economic growth of 1.8 percent and then 1.4 percent, each over the subsequent nine months, but both were later revised. The most recent forecast, for example, was cut from 2.2 percent growth to 1.4 percent, and the 0.4 percent estimate could be revised later.

The data used for the latest forecast, collected in April, include the biggest jump in the state unemployment rate in more than three years, Crone said, from a 4.5 percent rate in March to 5.1 percent in April — the highest level in two years.

Meanwhile, vendors surveyed by the bank reported getting raw materials and goods to customers quicker, a sign they had less business to handle, and the number of new-home construction permits dropped from about 2,240 in March to 1,660 in April. Crone said the market for both new and existing homes has been slowing nationwide as well as in New Jersey, with prices increasing less rapidly and the inventory of unsold homes rising.

“We don’t expect a total collapse. It’s just like letting a little air out” of the once-hot market, he said.

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34 Responses to New Jersey Economy To Slow

  1. pesche22 says:

    of course the economy is going to slow. nj is not business friendly.

    they screwed that up as well.

  2. Richard says:

    who cares. NYC will provide all the jobs anyone in NJ needs! snicker.

  3. pesche22 says:

    richard

    i agree

    perhaps new jersey could make
    a deal with mexico and just
    bring all of the illegals right
    here.

    after all we need the help

  4. Anonymous says:

    “We don’t expect a total collapse.”
    does anyone ever expect an economic collapse? layoffs would take prices way down. and if we ever see a correction in the financial sector acompanied by layoffs. oh boy!

  5. Anonymous says:

    Don`t worry we`re getting rich not doing anything… more money in Real Estate than stock market !!!

    Click to see where is me: Living in a Million Dollar area in North Dover-Toms River, New Jersey 08753

    Remember this South-Central New Jersey !!!

  6. pesche22 says:

    some people have no shame

  7. Anonymous says:

    are any of those paid survey sites for real, or all they all scams?

  8. Anonymous says:

    I understand that NJ is not business friendly… then why in the world do 50-some fortune 500 business have some sort of facility in Morris County alone? Why don’t they move somewhere like Raleigh Durham, where the cost of living is less, the tax structure is friendlier and they are close to 4 outstanding universities.

    Oh, right NY…

  9. Anonymous says:

    Want to know if anyone could tell me what various status codes mean in MLS.
    I have a realtor who has sent me listings. A means available A* means most likely bid has been accepted. UC means under contract. S means sold. What does W mean? What does P mean? Are the other statuses I have correct.

  10. pesche22 says:

    excuse me, fortune 50 companies
    may have facilities in morris
    county, but most ops. are elsewhere.

    and as you know its rare when
    we attract a hqts.

    we attract back office,,
    and most of the hqts. have been
    here for many years.

    New Jersey is old news as far
    as having major companies
    locate here.

    As a matter of fact Lenox just
    left because of unfriendly
    regs. they went over the river
    to Pa. at about half the cost.

  11. Anonymous says:

    w – withdrawn (or listing expired)
    p – pending (I think) – I am fortunately not a realtor :)

  12. A- Active
    A* Attorney Review in Process
    UC/and or P -Past attorney review not closed yet -Under Contract
    X – Expired
    WT – Withdrawn Temporarily
    WC – Withdrawn conditionaly
    WU – Withdrawn Unconditionaly
    KL

  13. What about biotec? Isn’t that industry pretty big in NJ? Help with job market and stuff for NJ?

  14. Anonymous said…
    I understand that NJ is not business friendly… then why in the world do 50-some fortune 500 business have some sort of facility in Morris County alone? Why don’t they move somewhere like Raleigh Durham, where the cost of living is less, the tax structure is friendlier and they are close to 4 outstanding universities.
    Oh, right NY…

    Anon 3:02PM: While your argument make sense, it is being discussed out of context. On the margin, Corporations are leaving, well paying jobs are leaving, and the competitive advantages of NJ have starkly dissippated. When reviewing conditions in relative terms from where they are today, to where they will be, there is only one answer – DOWN.

  15. UnRealtor says:

    “Why don’t they move somewhere like Raleigh Durham, where the cost of living is less, the tax structure is friendlier and they are close to 4 outstanding universities.”

    Many companies are doing exactly that.

    CSFB moved their entire IT department down there last year, and other companies are doing the same.

    For many jobs, there’s no reason to be geographically located next to NY.

  16. Pat says:

    Chicago – I personally think that based on the available business rentals in NJ, that you are correct.

    Many buildings underleased.

    If companies aren’t sending the jobs down south, their sending them to ppl’s homes, if possible.

    A lot of unleased space around central NJ.

    I don’t know about North.

  17. UnRealtor says:

    “Many buildings underleased. If companies aren’t sending the jobs down south, their sending them to ppl’s homes, if possible.”

    And to the buildings and homes in Bombay.

  18. rymingrealtor,

    what does “T” mean?

  19. Pat says:

    Unrealtor – thanks, forgot about all my new password reset contacts who can’t pronounce my name.

  20. UnRealtor says:

    FYI, the excellent SoCalMtnGuy has a new post up:

    http://www.housingbubblecasualty.com

  21. Anonymous says:

    unrealtor, if I may ask, you an IT professional ?

    CNS

  22. UnRealtor says:

    CNS, just an observer of trends.

  23. RentinginNJ says:

    then why in the world do 50-some fortune 500 business have some sort of facility in Morris County alone?

    answer: “opportunity cost”.

    Most major companies that are in NJ are here because they have been here for a long time, not because NJ is a good place to do business today. You can find many places now with an educated workforce and good transportation infrastructure. “Close to NYC” is meaningless.

    Existing businesses generally do not expand operations in NJ and new businesses generally don’t relocate here. The ones that stay are here because opportunity cost for moving is high. It costs money to move, it disrupts operations, major hassle, lose valuable employees, negative PR with layoffs etc. While, it takes a lot for a company to relocate, many NJ companies seem to be exiting gradually; shifting out an operation here or there, expanding in NC rather than NJ, etc.

  24. Anonymous says:

    Companies are relocating at least to Nevada and Delaware. I guess they have very business-friendly atmosphere. My company (very big foreign) has just moved its US HQ to Delaware.

    Worst states (most hostile to business) in the US are probably NJ and CA. I know businesses are leaving CA in droves and moving to Nevada, Texas or Arizona. Probably same thing here. Of course, it is not always easy to relocate but given that people vote far-left politicians this decision is getting easier for companies.

  25. Anonymous says:

    given that people vote far-left politicians

    Jon Corzine is far left?

    Wow, the stupid meter just blew up!

    Sure the state budget is a mess right now. If Jon Corzine was politically smart (we know he is an overall smart guy), he would cut section 8 right now. Why keep paying this “welfare” to landlords? Why does my hard earned tax money go towards to paying the rent of able bodied people? Once we get the leaches of the goverment teet, we will prosper again. Even our taxes will go down since everyone would be contributing. Also start combing all these small piss-pot towns into larger towns/small cities to share administrative costs would also save on the the tax bill. Corporations are leaving this state because of taxes, cut governmnet waste and taxes will be lower. Fund the pension system properly, but get rid of fraud and abuse.

    Jon Corzine could be the greates Governor ever or the biggest disappointment, it’s your call Jon.

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