The advance estimate of U.S. real gross domestic product (GDP) for 2023 Q2 expanded by an annualized 2.4 percent, exceeding expectations that the economy would slow down due to higher-interest rates. The real GDP growth largely reflected a strong rebound in business investment as well as increases in consumer spending.
Seasonally adjusted U.S. nonfarm employment added 187,000 jobs in June, continuing to cool with a combined downward revision of 49,000 jobs for the previous two months. The June unemployment rate fell to 3.5 percent, and wage growth still surpassed inflation, rising by 4.4 percent from last year. Retail sales in June posted a weak growth of 1.5 percent year-over-year, remaining below the June PCE inflation rate of 3.0 percent. The Fed increased the federal funds rate by another 25 basis points to a range of 5.25 to 5.50 percent in July, the highest level since 2001, in response to the stronger-than-anticipated performance of the U.S. economy.
Nevada posted somewhat positive economic signals. Seasonally adjusted statewide employment added 3,600 jobs in June. The unemployment rate, however, remained unchanged at 5.4 percent, seasonally adjusted, for three consecutive months, the highest unemployment rate of all states and DC. May taxable sales rebounded strongly, up by 6.3 percent year-over-year. June gaming revenue, nevertheless, declined by 2.4 percent year-over-year but still remained substantially higher than pre-pandemic levels.
Clark County also displayed somewhat favorable economic signals. The Las Vegas metro seasonally adjusted employment in June added 2,400 jobs. The unemployment rate, smoothed seasonally adjusted, however, stayed at 5.8 percent from the month prior, remaining high among large metro areas. Taxable sales in May experienced a strong increase of 5.3 percent year-over-year. June Harry Reid passengers and visitor volume climbed by 4.3 and 3.4 percent, respectively, from last year. Gross gaming revenue decreased by 3.5 percent over the same period. June residential permits were down by 21.1 percent from last year after a strong year-over-year rebound in the previous month.
Washoe County finally showed somewhat positive economic signals after several months of weak performance. The Reno-Sparks seasonally adjusted employment added 1,400 jobs in June, but the unemployment rate edged up to 4.2 percent. May taxable sales experienced a substantial rebound, up by 9.9 percent year-over-year. June gaming revenue and visitor volume also increased strongly by 10 and 6.9 percent, respectively, year-over-year. Residential permits in June, however, also continued to decrease by 29.4 percent from last year.
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.
