HOUSTON—Investment sales volume has been on the rise, and aCBRE study that GlobeSt.com reported Mondayafternoon posited one reason: increasing lender activity.Transwestern, in its “The Briefing” newslettercompiled by CIO Tom McNearney, provides another: apickup in domestic economic activity.

Among other indicators compiled by McNearney, second-quarter GDPgrew by 4.2%, the consumer confidence index jumped to 90.0 in Julyfrom 86.4 in June, and industrial production rose 4.3% year overyear. Further, the US trade deficit shrank by 0.6% in July vs. Juneto a seasonally adjusted $40.5 billion, leading to Q3 growthrevision upward to 3.1% from 2.7%.
“The US is showing indications of increasing economic activity,while both Europe and Asia are showing signs of reaching stallspeed,” McNearney writes. “The sole exception for the US economygaining speed is that consumption and same-store retail salesappear to be stubbornly flat. However, if job growth continues tobe strong, we should see some lift in consumption and retail salesin the third and fourth quarters.”

Conversely, McNearney observes that it's clear that the FederalReserve will end its $3-trillion-plus bond purchase/stimulusprogram in October. “The Fed's withdrawal of stimulus and ultimaterate increases will provide some drag to the economy,” hewrites.