The federal government shutdown continued to affect several economic data series at the end of 2025 as a result of missing October values. The U.S. Department of Justice opened a federal investigation of Fed Chair Powell, raising concerns about the Fed’s ongoing independence. Chair Powell for the first time responded to the political pressure in written and televised remarks.
The initial estimate of U.S. real gross domestic product (GDP) posted a stronger-than-expected expansion of 4.3 percent at an annual rate in the third quarter, largely driven by robust consumer spending. Net exports and government spending also contributed positively to the strong increase in real GDP. Labor market conditions continued to soften in December, as employment rose by 50,000 jobs and the unemployment rate ticked down to 4.4 percent from a four-year high of 4.5 percent in the prior month. Inflation moderated, remaining at 2.7 percent from the prior month and down from 3.0 percent in September. October retail sales increased by 3.5 percent year-over-year. Housing starts fell 7.8 percent from last year. Nevada’s economy showed relatively favorable economic signals. Seasonally adjusted employment added 2,700 jobs from last month and was up slightly by 0.1 percent from last year. The unemployment rate fell to 5.2 percent, down from 5.8 percent a year ago. September taxable sales increased strongly by 12.2 percent year-over-year with strong performance in Storey County. November gaming revenue rose 2.4 percent year-over-year, while air passengers declined 9.1 percent over the same period.
Clark County’s economy generally posted unfavorable signals. Employment lost 900 jobs in November, a 0.1 percent month-over-month decrease and remained 0.3 percent below last year’s level. The unemployment rate remained at 5.6 percent. September taxable sales increased 8.1 percent from last year. Visitor volume and air passengers continued to decline in November, falling 4.6 percent and 9.7 percent year-over-year, respectively. Despite ongoing year-over-year declines in visitor volume, November gaming increased by 2.0 percent from last year, supported by steady visitor spending.
Washoe County continued to outperform the southern region across many indicators. Employment added 500 jobs in November and remained 0.3 percent above last year’s level. The unemployment rate stood at 4.4 percent. Taxable sales surged 31.9 percent year-over-year, driven by a 517 percent increase in Storey County, driven largely by activity in the Tahoe-Reno Industrial Center. November gaming revenue rose strongly by 6.4 percent from last year, alongside gains in visitor volume and air passengers of 5.0 and 0.2 percent, respectively.
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.
