TAG Industrial Watch: July 13, 2024

For the second month in a row, the increase in the Consumer Price Index (CPI) produced positive news, this time declining by 10 basis points. With year-over-year CPI up 3.0%, market expectations of a September rate cut by the Federal Reserve are nearing a foregone conclusion. While markets may indeed get that much-needed rate cut by the Fed, the assumption that high inflation is now a thing of the past is likely mistaken. When the Fed began its fight against inflation, Wall Street speculators pushed commodity prices down, which helped put the CPI in check. Now that the Fed’s fight is over and is expected to soon cut rates, commodity prices have been back on the move.

On the very day, the better-than-expected CPI was released, commodity prices across the board from oil to gold moved higher, meanwhile, the exchange value of the U.S. dollar to foreign currencies fell. The CRB Commodity Index, which is comprised of 19 globally traded commodities, is up over 12% year-to-date (Trading Economics). For industrial investors, it’s important to look beyond the CPI headlines and understand the factors today that drive prices higher in the future. Unfortunately, the only thing “transitory” may be the current “disinflation.” Which means that investors should remain focused on building a portfolio of small and or specialized industrial properties like the ones found along rail lines in markets like Chicago and Saint Louis.

I N D U S T R I A L   N E W S

US Consumer Prices Unexpectedly Fell In June, Drawing Fed
Closer To Cutting Interest Rates
The Guardian – July 11, 2024
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Gold Breaks Above $2,400 As U.S. CPI Beats Expectation In June
Kitco – July 11, 2024
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Property Taxes Put The Squeeze On Industrial
GlobeSt.com – June 27, 2024
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The Bisnow Weekender: Return To The Land Of OZ
Bisnow – June 27, 2024
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R E G I O N A L   N E W S

Samsung Supplier To Build 2.2M-SF Neighboring Plant
Connect CRE – July 11, 2024
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Measuring The Strength Of The Chicago Industrial Landscape
REjournals – July 2, 2024
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Adler Pays $38M For Denver Light Industrial Facility
Commercial Property Executive – July 11, 2024
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Hurricane Beryl Has Minimal Impact On US Gulf Oil, Gas Operations
Oil & Gas Journal – July 8, 2024
Read More