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Comptroller: NYC’s Economy Holds Strong But CRE Softens
New York City’s economy grew 3.0% in the first quarter of 2019, after growth of 3.5% in Q4 2018, according to City Comptroller Scott Stringer. Growth was fueled by a strong labor market—albeit slightly slower than in Q4—and wage growth as measured by average hourly earnings.
The banking sector, a key driver of the city’s economy, continued to perform strongly. Net income after taxes for the nation’s top six banks rose to almost $32 billion in Q1 2019, the best Q1 on record.
That being said, Stringer noted that Manhattan’s commercial real estate sector softened during Q1. Citing Cushman & Wakefield data, he reported that vacancies ticked up by 140 basis points year over year to 10.2%. Leasing velocity, though, was strong.
In the residential sector, Stringer noted weakening on the for-sale side, although that gave a boost to the rental market in both volume and asking rents.
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- ◦Economy
