The first quarter estimate for the U.S. gross domestic product (GDP) for 2024Q1 increased at an annual rate of 1.6 percent. Although the growth rate was somewhat disappointing, the breakdown of the components suggests a robust economy with strong consumer spending. A surge in imports and reduced business inventories negatively contributed to real GDP growth. Increased imports and reduced inventories , however, indicate robust consumer demand for goods and services.
Seasonally adjusted U.S. non-farm payroll increased by 175,000 jobs in April, which fell below the 243,000 market estimate and a decrease from March’s 315,000 jobs. Average hourly earnings increased by 0.2 percent, lower than the 0.3 percent market estimate. April’s unemployment increased to 3.9 percent from 3.8 percent in March. Overall, the most recent data suggest a slight weakening in the labor market.
Retail sales in March increased robustly by 4.3 percent year-over-year. In its May meeting, the Fed announced that it would maintain the federal funds rate unchanged while deciding to slow the pace of balance sheet reductions, which may alleviate any liquidity challenges within the banking system.
Nevada posted strong economic signals. Seasonally adjusted employment added 1,800 jobs in March. The unemployment rate slightly decreased to 5.1 percent from 5.2 percent in the previous month. February taxable sales increased 7.3 percent year-over-year. March gaming revenue, however, saw a decrease of 1.6 percent from last year.
Clark County exhibited mixed economic signals. Seasonally adjusted employment increased by 1,700 in April. The unemployment rate decreased by 0.1 percent, from 5.4 percent to 5.3; down the same percentage point from a year ago. Taxable sales in February increased 6.0 percent from a year ago, attributed to boosted tourism activities by the Super Bowl and increased convention attendees. March gaming revenue, nonetheless, decreased by 1.5 percent year-over-year. Furthermore, the hotel occupancy rate and average daily room rate plummeted, partly due to a sharp decrease in convention attendance. March residential permits increased significantly by 120.7 percent compared to last year, possibly reflecting anticipation of interest rate reductions.
Washoe County displayed slightly stronger economic signals. Reno-Sparks seasonally adjusted employment experienced a strong increase of 1,700 jobs in March. The unemployment rate edged down by 0.1 percentage point to 4.0 percent from 4.1 percent. Taxable sales surged by 17.3 percent year-over-year. Residential permits in March climbed by 13.5 percent 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
