New York City's economy showed signs of a potential slow down in the first quarter as private sector wages stagnated, commercial real estate leasing cooled and venture capital investment fell for the first time in four years. The city's economy grew at a robust 3.4 percent during the quarter, outpacing national growth of 0.5 percent, but the drop in important indicators of future growth was a worrisome sign, according to the report released on Thursday by Comptroller Scott Stringer's office.
Data on wages, venture investment and real estate were "causes of concern," Stringer said in a statement. The New York metro economy is the biggest in the United States and larger than that of many countries. Its yearly output is valued at about $1.5 trillion.
The findings will add fuel to an ongoing debate about the economic strength of the United States and the world. Venture capital investment in the city fell 6.2 percent to about $1.4 billion in the first quarter, the first year-over-year decline since 2012, the report found. At the same time, average hourly earnings for private-sector workers grew just 0.1 percent year-over-year, reflecting a proliferation of low wage jobs in the city since the financial crisis and recession of 2007-2009.
Although vacancy rates in Manhattan's office market dropped during the quarter, new leasing activity fell 6.0 percent to 6.5 million square feet. The number of city residents working or looking for a job rose. The city's workforce expanded by about 32,000 city residents, the highest quarterly increase in 12 years, according to the report.