The third quarter estimate for U.S. gross domestic product (GDP) for 2024Q1 increased at an annual rate of 1.4 percent, revised upward by 0.1 percentage point from the second estimate. Although the growth rate 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 206,000 jobs in June, higher than the 160,000 market estimate but a decrease from May’s 218,000 jobs. Average hourly earnings increased by 0.3 percent, higher than the 0.2 percent market estimate. June’s unemployment rate, however, increased slightly to 4.1 percent from 4.0 percent in May. The labor market remains resilient. Retail sales in May increased by 2.3 percent year-over-year, lower than the CPI inflation of 3.3 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 expects one rate cut for the rest of this year.
Nevada posted strong economic signals. Seasonally adjusted employment added 3,800 jobs in May. The unemployment rate remained the same at 5.1 percent. In April, taxable sales increased 8.9 percent year-over-year. May gaming revenue also saw an increase of 2.4 percent from last year. Nevada air passengers posted a year-over-year increase of 4.7 percent in May.
Clark County exhibited generally positive economic signals. Seasonally adjusted employment increased by 4,600 in May. The unemployment rate increased slightly to 5.4 percent. Taxable sales in April increased by 2.6 percent year-over-year. May gaming revenue and visitor volume rose by 2.9 and 4.3 percent, respectively, from last year. Furthermore, the hotel occupancy rate and average daily room rate increased by 1.7 and 9.1 percent year-over-year, respectively, partly due to the increase in festivals such as EDC and other events. May residential permits increased strongly by 67.8 percent compared to last year.
Washoe County displayed mixed economic signals. Reno-Sparks seasonally adjusted employment experienced a strong increase of 1,000 jobs in May. The unemployment rate increased by 0.2 percent to 4.2 percent. Taxable sales in April soared by 41.9 percent year-over-year, reaching a record high level. Residential permits in May fell by 2.8 percent from last year. Visitor volume and gaming revenue also fell by 2.7 and 0.3 percent, respectively, year-over-year in May.
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.
