August 14, 2019
Market News

From Monday to Wednesday the outlook for the economy changed quite a bit, at least for those looking for signals of a downturn. Reports from China and Germany over the weekend showed slowing growth (or shrinking in Germany's case). On August 14, the yield for the 10-year Treasury bond dipped below the yield for the 2-year bond. This inverted yield curve set off alarms all over Wall Street and beyond. (Read a very timely article about the subject from BreakingGround.)  Today, the yield on the 30-year bond dipped briefly below 2% for the first time ever.

These "signals" are just that. Recessions don't happen because of yield curves that go negative. Recessions do happen because of what can cause the yield curve to invert. What worries investors is when bond buyers are flocking to Treasury bonds even though the interest they will get is falling. That can be a signal that investors (usually very large mutual funds) are betting that low yields are better than the return on other assets, like stocks or real estate. It's the reasoning behind those fears that should be watched as summer ends. Will the administration's trade wars ease? Will the UK leave the European Union in a way that pushes Europe into recession? Will the world's second-largest economy continue to slow down and buy less? The answer to these questions will largely determine if and when a recession occurs.

Source: Federal Reserve Bank of St. Louis

Project News  

Massaro Corp. has started work on the $5 million Best of Batch facility in Homestead and $7 million bathroom renovations at Pitt-Johnstown. Rycon Construction is working on the 19,180 square foot tenant fitout for Microsoft at 910 River Avenue on the North Side. A. Martini & Co. has been awarded the $2.8 million fitout for Ernst & Young Downtown and is building Chase Bank's new branch at the Waterfront. The Waterfront is an active site. Shannon Construction is preparing the former Macy's for M & J Wilkow to convert 121,500 square feet to offices for Siemens Mobility and Commonwealth Charter Academy. Also at the Waterfront, EPC Real Estate Group announced its plan for 251 apartments. Light of Life Ministries broke ground on its new $5 million facility on the North Side. Herky Pollock announced plans for Beesontown Shops, a 23,000 square foot retail center outside Uniontown. See what contractors are building these projects at BuildingPittsburgh.

To keep up to date with the market check out  BuildingPittsburgh .  
People News

The Board of Directors of the Master Builders' Association announced the appointment to the board of Jodi Rennie, vice president and general manager of Turner Construction Company.

Coming Events

Airport Terminal Modernization Vendor Product Fair, August 27

PBX Fall Sporting Clays, Seven Springs, September 19
Looking to see what's happening?

If you're planning an event for the construction or commercial real estate industries, check out the Industry Events Calendar at the Tall Timber Group website. (

Double-check what else is going on in the industry on the dates you have in mind. Or check out what events you might want to attend. Interested in posting events? Email us for instructions.  
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Tall Timber Group is the publisher of BreakingGround and DEVELOPINGPittsburgh magazines and the Pittsburgh Homebuilding Report, and is a consultant for contractors and designers serving the construction and real estate market. For more information about our services, contact Jeff Burd or call:

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