The third estimate of U.S. real gross domestic product (GDP) for 2023Q1 grew by an annualized 2.0 percent, revised up by 0.7 percent from the second estimate reported last month. The real GDP’s upward revision mainly reflected stronger-consumer spending in services and exports, partly offset by downward revisions in business investment and federal government spending.
Seasonally adjusted U.S. nonfarm employment added 209,000 jobs in June, including the smallest gain of 149,000 in private sector employment since December 2020. May’s nonfarm employment was revised down to 217,000. The June unemployment rate fell to 3.6 percent. Wages increased strongly by 4.4 percent year-over-year. Retail sales in May continued weak growth, up by 1.6 percent year-over-year, lower than the May PCE inflation of 3.8 percent and core PCE inflation of 4.6 percent. The Fed is now expected to raise interest rates once again this summer to maintain inflation’s downward trajectory as the U.S. economy remains more robust than anticipated despite some cooling in the job market.
Nevada posted somewhat weak economic signals. Seasonally adjusted statewide employment added 1,500 jobs in May. The unemployment rate, however, remained unchanged at 5.4 percent, the highest unemployment of all states and DC. April taxable sales declined by 0.8 percent year-over-year. May gaming revenue also experienced a loss of 0.8 percent from last year, while total air passengers continued to increase strongly by 7.9 percent over the same period.
Clark County displayed somewhat favorable economic signals. The Las Vegas metro seasonally adjusted employment in May added 1,400 jobs. The unemployment rate, however, stayed at 5.8 percent from last month, remaining high among large metro areas. Taxable sales in April only rose by 1.9 percent year-over-year. May Harry Reid passengers and visitor volume were up by 8.2 and 1.5 percent, respectively, from last year, while gross gaming revenue decreased by 1.0 percent over the same period. May residential permits finally rebounded, up by 79.7 percent from last year after 10 consecutive months of year-over-year declines amid low inventories.
Washoe County showed unfavorable economic signals. The Reno-Sparks seasonally adjusted employment lost 500 jobs in May, and the unemployment rate also edged up to 4.1 percent. April taxable sales plummeted by 11.6 percent year-over-year. Residential permits in May also continued a year-over-year decrease of 28.5 percent. May gross gaming revenue and visitor volume, however, climbed by 3.8 and 0.8 percent, respectively, 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
