The second estimate of U.S. real gross domestic product (GDP) for 2023Q1 grew by an annualized 1.3 percent, revised up by 0.2 percent from the advance estimate reported in the previous month. The upward revision in real GDP primarily reflected a smaller decrease in business inventories, which mainly contributed to slower growth in real GDP for 2023Q1.
Seasonally adjusted U.S. nonfarm employment experienced a larger-than-expected gain of 339,000 jobs in May despite recent signs of a loosening labor market. May marked the 29th month consecutive of positive job growth. The unemployment rate rose to 3.7 percent, still historically low. Retail sales growth in April continued to decelerate to 1.6 percent year-over-year, the lowest since May 2020 while CPI inflation remained high at 5.0 percent. The Fed is likely to hold interest rates steady this summer, but still possibly raise rates further based on economic activity and inflation.
Nevada posted mixed economic signals. Seasonally adjusted statewide employment lost 2,900 jobs in April, largely reflecting 2,400 job losses in the leisure and hospitality sector. The unemployment rate, however, fell to 5.4 percent. Total air passengers continued to increase strongly by 12.4 percent year-over-year. April gross gaming revenue and March taxable sales only rose by 2.8 and 2.4 percent from last year amid inflation, yet the $1.16 billion in gaming win was the best April on record. Nevada continued to post the highest unemployment rate of all states and DC.
Clark County displayed somewhat favorable economic signals. The Las Vegas-Paradise seasonally adjusted employment in April lost 500 jobs. The unemployment rate edged down to 5.8 percent from last month but remained substantially high among large metropolitan areas. Taxable sales in March increased by 5.3 percent year-over-year. April Harry Reid passengers were up strongly by 12.8 percent from last year, while gross gaming revenue and visitor volume only rose by 3.6 and 0.1 percent, respectively, over the same period. April residential permits continued to decline by 49.5 percent year-over-year amid higher interest rates and falling housing inventory.
Washoe County showed mixed economic signals. The Reno-Sparks seasonally adjusted employment remained unchanged in April, and the unemployment rate also stayed at 4.0 percent. March taxable sales continued to contract by 3.1 percent year-over-year. April gross gaming revenue and visitor volume, however, increased by 2.3 and 7.2 percent, respectively, from last year. Residential permits continued a year-over-year decrease of 63.9 percent.
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
