The second quarter estimate for U.S. gross domestic product (GDP) for 2024Q1 increased at an annual rate of 1.3 percent, revised downward by 0.3 percentage points from the advance estimate. Although the growth rate disappointingly slowed, the breakdown of the components suggests a robust economy with strong consumer spending, residential and non-residential fixed investment, and government spending. A surge in imports and reduced business inventories, reflecting robust consumer demand, negatively contributed to real GDP growth.
Seasonally adjusted U.S. non-farm payroll increased by 272,000 jobs in May, higher than the 151,000 market estimate and an increase from April’s 175,000 jobs. Average hourly earnings increased by 0.4 percent, higher than the 0.2 percent market estimate. April’s unemployment rate, however, increased slightly to 4.0 percent from 3.9 percent in April. The labor market remains resilient. Retail sales in April increased by 3.0 percent year-over-year, lower than the CPI inflation of 3.4 percent over the same period. In its June meeting, the Fed announced that it would maintain the federal funds rate unchanged while mentioning that it predicts a one rate cut this year.
Nevada posted strong economic signals. Seasonally adjusted employment added 7,000 jobs in April. The unemployment rate remained the same at 5.1 percent. March taxable sales increased 5.3 percent year-over-year. April gaming revenue also saw an increase of 6.9 percent from last year. Nevada air passengers posted a year-over-year increase of 2.0 percent in March.
Clark County exhibited predominantly positive economic signals. Seasonally adjusted employment increased by 8,300 in April. The unemployment rate remained the same at 5.3 percent. Taxable sales in March increased by 3.8 percent year-over-year. April gaming revenue and visitor volume rose robustly by 8.5 and 3.4 percent, respectively, from last year. Furthermore, the hotel occupancy rate and average daily room rate increased slightly by 1.2 percent year-over-year, partly due to the increase in concerts and other events. April residential permits decreased by 12.8 percent compared to last year, reflecting a drop in multi-family unit permits.
Washoe County displayed mixed economic signals. Reno-Sparks seasonally adjusted employment experienced a strong increase of 800 jobs in April. The unemployment rate remained the same at 4.0 percent.
Taxable sales in March soared by 14.0 percent year-over-year. Residential permits in April climbed by 2.1 percent from last year. Visitor volume and gaming revenue, however, fell by 9.0 and 5.1 percent, respectively, year-over-year in April.
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.
