• Traditionally, a slowdown in the housing market is a bad sign for retail since shopping center development trails residential construction. The current downturn, however, has provided an unexpected upside. After years of steep inflation on construction materials because of the dizzying pace of residential construction, prices on items such as gypsum, plastics and ceramic tile have fallen back while those for cement and pre-cast concrete have posted only moderate gains.
• That means retail developers won't have to break the bank on new project construction.
• The downside?
• Sustained concerns over the housing slowdown also mean that retail spending may drop, which might make any further retail development extraneous.
• The "biggest financial bubble in history," cited by The Economist, fueled by rampant overbuilding and liberal mortgage lending practices between 2001 and 2006 has burst. In the first six months of 2007, new housing starts were down 27 percent compared to the same period in 2006 according to Reed Construction Data; with single-family starts falling 28.5 percent and multi-family starts down 18.5 percent.
• And, with just 1.49 million units having broken ground since October 2006, Reed researchers characterize the country's housing market as being in its worst shape since 1997.

Source: Retail Traffic, 2007

LEHI CITY POSITION OPENING

Economic Development/Redevelopment Coordinator

• CLOSING DATE: September 6, 2007
• SALARY RANGE: $49,000-$72,000 annually, plus excellent benefits
• STATUS: Appointed, Full Time
• DEPARTMENT: Administration
• JOB SUMMARY:
  • Under the general supervision of the City Administrator, performs a variety of professional, administrative and technical duties related to planning, organizing, directing and coordinating city-wide economic development.
  • Develops the city's economic base, including business retention and the building of commercial, industrial and retail sites within the community.
  • Administers the city's redevelopment programs and initiatives and coordinates the purchase of real property.
• MINIMUM REQUIREMENTS:
  • Bachelor's degree from an accredited college or university in public management, business management, finance, planning or closely related field.
  • Five (5) years of progressively responsible experience in economic development/redevelopment or related duties.
  • Valid Utah driver's license required.
  • Must pass drug test and background check before hire.
• NOTE: A complete list of essential functions and minimum requirements of the position may be obtained from Lehi City Human Resources. Lehi City will provide reasonable accommodations for any applicant during the examination and selection process. If you have special needs, please call 801- 768-7100, ext. 2265. For required City application, contact Lehi City Human Resources, 153 North 100 East , Lehi, UT 84043 or download application and job description at www.lehicity.com. Lehi City is an equal opportunity employer and does not discriminate on the basis of race, color, national origin, gender, religion, age or disability.

• Wal-Mart is considering acquisitions in its home market for the first time in more than 25 years as it seeks to open smaller stores and cut its reliance on its giant Supercenters for future growth.
• The world's largest retailer, whose US stores had sales of more than $64bn last year, is seeking an executive to assess the "strategic implications of any possible M&A on our overall portfolio", according to a Wal-Mart job posting.

Source: The Financial Times Ltd 2007

• International Business Confidence
• Business sentiment fell again last week to its lowest level since in the middle of the Iraq invasion in early 2003. Confidence is now consistent with an economy that is barely expanding. Assessments of present conditions and expectations regarding the six- month outlook are both negative for the first time in the history of the survey. Businesses are nervous across the globe, with Asian businesses most upbeat and European businesses most negative. Pricing pressures have vanished, despite still very high commodity prices, providing the Federal Reserve substantial latitude to ease monetary policy.

• International Office Rents
• The 10 largest global office markets including London and New York posted 20% increases in asking rents during the 12-month period that ended at midyear. Occupancy rates also ticked upwards in each of the 10 office hubs where vacancy was already in single-digit territory before midyear 2006.

• New Home Sales (C25)
• Some stabilizing is evident in the housing market, with July home sales coming in 2.8% above June for sales of 870,000 annualized units. June data were revised upward. Months of supply moved down slightly to 7.5, while the median sales price is up by 0.6% from one year ago. Given current tightness in the mortgage market, however, this improvement at best represents the beginning of a slow and uneven recovery.

• Existing Home Sales
• No signs of recovery in the housing market from the existing home sales data, with July's sales numbers declining again. Sales declined 0.2% from June to 5.75 million annualized units, on par with expectations. The inventory-to-sales ratio surged to 9.6 months, while the median existing price is down by 0.6% from one year ago.

• Durable Goods (Advance)
• Durable goods orders rose 5.9% in July-a much larger than expected increase. Orders for June were revised up 50 bps to 1.9%. Shipments were strong as well, rising 3.8% following a 1.1% decrease in the prior month. The 0.1% rise in durable goods inventories followed a small decline in June. Capital goods orders bounced back in July with a 2.2% gain. The July report is the strongest in months and builds positive momentum going into the third quarter.

• Conference Board Consumer Comfort Index
• The Conference Board index of consumer confidence fell in August to 105 from a downwardly revised 111.9 in July (previously 112.6). The decline was led by the present situation component, although expectations also fell sharply. Assessments of labor market conditions weakened.

• MBA Mortgage Applications Survey
• Mortgage demand decreased 4.0% in the week ending August 24. Purchase applications decreased 4.0% and refinance applications decreased 4.2%. The ARM rate increase was explosive. The index is down and will remain so, once accounting for the inherent volatility in this survey.

• Chain Store Sales
• Chain store sales rose 0.3% in the week ending August 25. Year-over-year growth dipped to 2.5%. Modest sales continued in a week the ICSC indicated had a somewhat better tone.

• Oil and Gas Inventories
• Crude oil inventories fell by 3.5 million barrels for the week ending August 24, according to the Energy Information Administration, well below expectations of a 0.8 million barrel draw. Gasoline inventories dropped by an outsized 3.6 million barrels compared with expectations of a 1.7 million barrel decline. Refinery activity disappointed, falling to 90.3% from 91.6% a week earlier. Distillate supplies rose by 0.9 million barrels, in-line with expectations. This report is bullish.

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