The second estimate of U.S. real gross domestic product (GDP) for 2023Q4 expanded at an annual rate of 3.2 percent, revised downward by 0.1 percent from the advance estimate. The downward revision reflected decreased private inventory investment, which was partly offset by increased state and local government and consumer spending. Overall, the robust growth was mainly driven by consumer and government spending.
Seasonally adjusted U.S. nonfarm employment added a stronger-than-expected 275,000 jobs in February, led by the healthcare, government, and leisure and hospitality sectors. Employment figures for January and December, however, were revised down by a combined 167,000 jobs. The February unemployment rate rose by 0.2 percent to 3.9 percent, the highest since January 2022. Retail sales in January experienced a weak gain of 0.6 percent year-over-year despite a 3.2 percent increase in the consumer price index. The Fed is expected to hold the federal funds rate unchanged in the short run and possibly consider delaying cuts this year with persistent inflation and a strong labor market.
Nevada exhibited generally positive economic signals. Seasonally adjusted statewide employment increased by 900 jobs in January. The unemployment rate in January remained unchanged at 5.3 percent, still the highest unemployment rate among states. Taxable sales in December rose by 2.1 percent year-over-year. Gaming revenue in January increased by 0.5 percent compared to last year.
Clark County displayed mixed economic signals. Seasonally adjusted employment in the Las Vegas metro area added 1,800 jobs in January. The unemployment rate stayed at 5.5 percent in January, remaining the highest among large metro areas. December taxable sales climbed by 1.0 percent year-over-year. Gaming revenue and Harry Reid air passengers in January decreased by 1.1 and 1.0 percent, respectively, from last year. January Las Vegas visitor volume, nonetheless, was up robustly by 3.3 percent year-over-year. January residential permits continued a strong year-over-year gain of 153.9 percent.
Washoe County also showed somewhat favorable economic signals. The Reno-Sparks seasonally adjusted employment lost 900 jobs in January. The unemployment rate, nevertheless, decreased to 4.1 percent. December taxable sales experienced a solid gain of 7.5 percent year-over-year. January air passengers and gaming revenue increased by 0.7 and 35.4 percent, respectively, year-over-year, while visitor volume fell by 2.8 percent over the same period. January’s residential permits were up by 22.1 percent year-over-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.
