Myrtle Beach, SC, Orlando, FL and Washington, D.C. January 7, 2014—Highland Global has released its 2014 economic outlook based on internal analysis, input from the independent think tank, Thinking Outside the Boxe, and consultations with colleagues within the valuation profession and business community.  Highlights of Highland Global Business Valuation’s economic outlook follow: Continue reading →

Gross Domestic Product

            Following zero growth in 2008 and a 2.6% contraction in 2009, real gross domestic product (GDP) increased by roughly 2.8% (an an annual basis) according to advance estimates[i] released by the Bureau of Economic Analysis (BEA).  The economy remained modestly expansionary in 2010 with first and second quarter changes in real GDP of 3.7% and 1.7%.  These figures follow an increase in real GDP of 5% in the fourth quarter 2009.  Third and fourth quarter real GDP increased by 2.6% and 3.2%, respectively, showing a slight upward trend in economic activity.  While the trend in 2009 was clearly marked by recession followed by a modest upturn in activity, economic activity in 2010 could be characterized as modest.  However, in 2010, housing markets remained weak with continued declines in prices and increases in foreclosures, credit markets remained tight, inflationary pressures increased and unemployment remained high. Continue reading →

Gross Domestic Product

            Following zero growth in 2008 and a 2.6% contraction in 2009, real gross domestic product (GDP) increased by roughly 2.8% (an an annual basis) according to advance estimates[i] released by the Bureau of Economic Analysis (BEA).  The economy remained modestly expansionary in 2010 with first and second quarter changes in real GDP of 3.7% and 1.7%.  These figures follow an increase in real GDP of 5% in the fourth quarter 2009.  Third and fourth quarter real GDP increased by 2.6% and 3.2%, respectively, showing a slight upward trend in economic activity.  While the trend in 2009 was clearly marked by recession followed by a modest upturn in activity, economic activity in 2010 could be characterized as modest.  However, in 2010, housing markets remained weak with continued declines in prices and increases in foreclosures, credit markets remained tight, inflationary pressures increased and unemployment remained high. Continue reading →

Gross Domestic Product

            Advance estimates[i] released by the Bureau of Economic Analysis (BEA) indicate that real gross domestic product (GDP) contracted by 2.4% on an annual basis in 2009 over the prior year.  For 2008, real GDP increased by 0.4% on an annual basis as compared to a 2.1% increase in 2007.  The economy continued to contract sharply during the first and second quarters of 2009, falling 6.4% in the first quarter and 0.7% in the second quarter.  This continued the trend begun in the second half of 2008 when real GDP contracted 2.7% in the third quarter and 5.4% in the fourth quarter[ii].   Economic activity showed signs of improvement in the second half of 2009 with real GDP increasing by 2.2% in the third quarter and by 5.7% in the fourth quarter.  The continued recessionary trend in real GDP in the first half of 2009 was characterized by even further deterioration in the housing markets, continued tight credit markets following financial instability in the banking system late in 2008, waning consumer demand and confidence, and rising unemployment as businesses adjusted to lower demand expectations. Continue reading →

Gross Domestic Product

            Advance estimates[i] released by the Bureau of Economic Analysis (BEA) indicate that real gross domestic product (GDP) weakened in 2008 with an increase of only 1.3% on an annual basis.  This is lower than the 2.0% increase in 2007 and the 2.9% increase for the full year 2006.  Economic activity showed generally weaker performance throughout 2008.  Real GDP increased only 0.9% in the first quarter followed by an increase of 2.8% in the second quarter.  GDP began its decline in the third quarter, falling 0.5%, and followed this with a 3.8% decline in the fourth quarter.  The decline in real GDP growth marks the beginning of a recession that has most likely been the result of further deterioration in the housing markets, a subprime mortgage crisis that has had a systemic impact throughout financial markets despite easing of monetary policy, and financial instability in the banking system.    Continue reading →

Introduction

            After an increase of 2.9% for the full year 2006 and an increase of 2.1% in the fourth quarter 2006 (revised), real gross domestic product (GDP) exhibited significant weakness in the first quarter 2007 with an increase of only 0.6%.  Real GDP showed marked improvement in the second quarter, increasing by 3.4% based on advance figures.  This weakness in real GDP growth has most likely been the result of continued deterioration in the housing markets and the attending impact of higher interest rates on the mortgage markets as well as elevated energy prices.    Continue reading →

Introduction

            Real gross domestic product (GDP) weakened in 2007 with an increase of 2.2% on an annual basis.  This is lower than the 2.9% increase for the full year 2006.  Economic activity showed mixed results throughout 2007.  Real GDP increased only 0.6% in the first quarter but showed marked improvement in the second quarter, increasing by 3.8%.  GDP growth seemed to have stabilized during the third quarter with an increase of 4.9%, though hopes of continued robust expansion were dashed by the virtually flat performance during the fourth quarter when GDP increased by 0.6%.  The declining trend in real GDP growth has most likely been the result of further deterioration in the housing markets, a subprime mortgage crisis that has had a systemic impact throughout financial markets despite easing of monetary policy, and further elevated energy prices and the inflationary impact upon consumer prices.   Continue reading →

Introduction

            Real gross domestic product (GDP) showed some improvement in the fourth quarter of 2006 with an increase of 3.5% at an annual rate as compared to a 2.0% increase in the third quarter.  Real GDP increased by 2.5% in the second quarter and 5.6% during the first quarter of 2006.  Real GDP increased by 1.8% in the fourth quarter of 2005 and at an annual rate of 3.2% for the full year 2005 on a revised basis.  For 2006, real GDP increased at an annual rate of 3.4%.  The advance in real GDP during the fourth quarter was helped by gains in personal consumption expenditures, exports, and government spending.  The increase in real GDP during the last quarter of 2006 came despite continued weakness in the housing markets and still elevated energy prices.    Continue reading →

Introduction

          Economic activity rebounded sharply in the first quarter of 2006 with real gross domestic product (GDP) increasing by 4.8% at an annual rate as compared to an increase of 1.7% in the fourth quarter of 2005 and an increase of 3.5% for the full year 2005.  This increase in economic activity is the highest quarterly growth rate since the third quarter of 2003 when real GDP increased at an annual rate of 7.2%. Despite continued high energy prices and further tensions stemming from geopolitical risks, economic activity in the first quarter advanced at a favorable rate due to strength in personal consumption expenditures, increased federal spending, and increases in nonresidential fixed investment.  Continue reading →