The U.S. economy made impressive gains in late 2024. The third and final estimate of U.S. real gross domestic product (GDP) for 2024Q3 exceeded expectations at an annual rate of 3.1 percent, surpassing the original estimate of 2.8 percent. Industries like retail trade and healthcare contributed to the 2024Q3 increase in real GDP, while agriculture and administrative services experienced minimal declines. Altogether, 16 of the 22 (73 percent) industry groups that comprise the GDP estimate increased in 2024Q3.
Seasonally adjusted U.S. nonfarm employment increased by 256,000 jobs and the unemployment rate dipped to 4.1 percent in December, both outperforming economists’ projections. The Fed lowered interest rates for the third consecutive time in 2024 at the December FOMC meeting, dropping the target interest rate range to 4.25 – 4.5 percent. The 10-year Treasury yield, however, has continued to surge amid growing concerns of higher inflation.
Key economic indicators trended unfavorably in Nevada. Nevada’s unemployment rate remains the highest in the nation at 5.7 percent. Seasonally adjusted statewide employment lost 3,100 jobs in November and grew slightly by 0.5 percent from November 2023. Taxable sales in Nevada dropped 4.4 percent from October 2023; also having declined compared to the previous year in Nevada for five of the six past months spanning May to October. Gaming revenue decreased by 4.2 percent compared to November 2023.
Clark County similarly experienced negative economic signals. Seasonally adjusted employment in November experienced its sixth consecutive month of decline, losing 2,600 jobs, and the unemployment rate increased to 6.0 percent in November. October Taxable sales fell by 4.4 percent from last year after a rebound in September. Clark County gaming revenue decreased by 4.2 percent compared to November 2023 and visitor volume increased by 0.5 percent compared to the prior year. In November, Harry Reid airport passengers declined 2.1 percent year-over-year. This performance aligns with reports that the Formula 1 race in Las Vegas was not as widely attended as the inaugural race in November 2023.
Washoe County also experienced poor economic performance. Seasonally adjusted employment fell by 800 jobs but the unemployment rate also slightly decreased in November to 4.7 percent. Taxable sales in October fell by 3.6 percent from last year. Gaming revenue in November declined by 6.0 percent despite a 0.2 percent increase in visitor volume over the same period. Residential permits dropped by 16.2 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.
