The advance estimate of U.S. real gross domestic product (GDP) for 2024Q4 posted steady growth at an annualized percentage of 2.3 percent, largely reflecting continued strong consumer spending. Government spending also contributed positively to real GDP growth, while nonresidential and private inventory investments contributed negatively. Residential investment rebounded after two consecutive falling quarters. Seasonally adjusted U.S. nonfarm employment added 143,000 jobs in January, somewhat lower than the average monthly gain of 166,000 in 2024. The unemployment rate declined slightly to 4.0 percent. Retail sales in December continued a strong year-over-year increase of 3.9 percent. Inflationary pressures continued to persist, with the Consumer Price Index (CPI) increasing by 2.9 percent year-over-year in December. In response, the Federal Reserve kept the federal funds rate unchanged at the January 2025 Federal Open Market Committee (FOMC) meeting after three consecutive rate cuts during the second half of 2024.
Nevada exhibited somewhat positive economic signals. Seasonally adjusted statewide employment added 5,300 jobs in December, but only rose by 0.7 percent from last year. The unemployment rate persisted as the highest in the nation, remaining unchanged at 5.7 percent. Gaming revenue climbed by 2.0 percent from last year.
Clark County also displayed some favorable economic signs. Employment increased by 0.4 and 0.7 percent month-over-month and year-over-year, respectively. Weak annual growth largely reflects lower employment levels in the professional and business services, leisure and hospitality, and trade, transportation, and utilities sectors compared to December 2023. The unemployment rate remained at 6.0 percent, the highest level since February 2022. Gaming revenue in December experienced a year-over-year gain of 1.5 percent, while visitor volume increased slightly by 0.2 percent over the same period. In December, Harry Reid air passengers also rose by 1.1 percent year-over-year. Residential permits decreased by 40.5 percent from last year.
Washoe County’s economic performance also remained relatively positive. December employment declined slightly by 0.1 percent but remained 0.8 percent higher year-over-year. The unemployment rate, on the other hand, held steady at 4.7 percent, which also means that it remains 0.5 percentage points higher when compared to last year. Gaming revenue and visitor volume in December rose by 12.0 and 1.8 percent, respectively, year-over-year. Residential permits in December also posted a yearly gain of 1.5 percent.
UNLV Center for Business and Economic Research
The views expressed are those of the authors and do not necessarily represent those of the University of Nevada, Las Vegas or the Nevada System of Higher Education.
