For Real Estate Professionals Seeking a Market Edge
Factory Activity Fueling Modest Recovery
Hopes that America's factories might assist in driving economic recovery gained support Monday from news that manufacturing activity grew in January to its strongest level since 2004. Other data, however, offered a reminder that the recovery remains fragile: construction spending sank in December to its lowest level in more than six years; and gains in personal income and spending were too modest in December to suggest that consumers can fuel a strong rebound.
Manufacturing activity has become a pocket of strength. The Institute for Supply Management reported the manufacturing index read 58.4 in January, (compared with 54.9 the previous month) the sixth consecutive month of expansion. Analysts polled by Thomson Reuters had anticipated a level of 55.5, although a reading above 50 indicates growth. New orders, a sign of future growth, jumped in January to the highest level since 2004; as did current production. Order backlogs grew, along with the prices companies paid for various goods.
Thirteen of eighteen industries indicated that they were expanding, led by the apparel, textile mills, and machinery sectors. China's manufacturing also expanded in January, and the outlook was positive despite government efforts to cool inflation by tightening control over bank lending, two surveys indicated Monday. U.S. manufacturers have been pumping up production to feed their customers' depleted stockpiles. The ISM also stated that manufacturers' inventories contracted at a slower rate in January; while their customers' stockpiles fell to an all-time low. As customers move to restock their shelves, manufacturers need to ramp up production to meet demand; and such a move may mean hiring more workers, in turn invigorating an economic rebound. ISM's employment measure grew last month.
We will keep you posted…
Hot Money
Quick Close Loans for Income Producing Properties
Penstar is working with a wealthy family seeking to place $50,000,000 in quick close loans on commercial properties and apartments located in Southern California. The private lender is seeking loans from $1,000,000 to $10,000,000 in a first position; however, they will consider a second if the leverage is very low. Maximum loan to value is 50% to 55%, pricing is 9.5%, and 1-point origination fee applies. For more information, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.
Helpful Humor
The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work-week
“Drinking Wisdom” “When I read about the evils of drinking, I gave up … reading.” Henny Youngman “Actually, it only takes one drink to get me loaded. Trouble is, I can't remember if it's the thirteenth or fourteenth.” George Burns “An intelligent man is sometimes forced to be drunk to spend time with fools.” Ernest Hemmingway “If your doctor warns that you have to watch your drinking, find a bar with a mirror.” John Mooney “I can't die until the government finds a safe place to bury my liver.” Phil Harris “Everybody should believe in something -- I believe I'll have another drink.” W.C. Fields “Whenever someone asks me if I want water with my scotch, I say, ‘I'm thirsty, not dirty.’ ” Joe Lewis |
30
Day Libor |
10-Year
Treasury |
Prime |
0.32% |
3.74% |
3.25% |
Penstar Realty Advisors can be reached at (818) 883-9600.
Our offices located at:
21700 Oxnard Street, Suite 1870, Woodland Hills, CA 91367