The third estimate of U.S. real gross domestic product (GDP) for 2023Q4 posted an annual growth rate of 3.4 percent. The increase primarily reflects a substantial increase in consumer and government (both local and state) spending. Residential fixed investment and private inventory investment, however, saw a noticeable decrease. Nevertheless, the higher growth was primarily driven by increases in consumer and government spending.
Seasonally adjusted U.S. non-farm employment increased by 303,000 jobs in March, including increases in healthcare, government, and construction jobs. Employment numbers in the first quarter saw an average increase of 276,000 jobs per month, which exceeds the 212,000 jobs, on average, from the last quarter. March’s unemployment rate edged down to 3.8 percent. Retail sales in February rose 1.5 percent year-over-year after a downwardly revised 1.1 percent in January. This increase is lower than the CPI inflation, which still tops 3 percent. The Fed, in the most recent FOMC meeting, indicated that they will maintain current interest rates and hold off on reducing rates until later this year, citing a need for stronger evidence of cooling inflation rates.
Nevada exhibited positive economic signals. Seasonally adjusted employment increased by 2,900 jobs in February, with the unemployment rate slightly decreasing to 5.2 percent from January’s 5.3 percent. February’s unemployment rate matches the 5.2 percent from a year ago. Taxable sales in January climbed by 4.4 percent year-over-year, while gaming revenue increased by 8.5 percent in February.
Clark County displayed generally mixed economic signals. Seasonally adjusted employment increased by 1,800 jobs in February. The unemployment rate in Southern Nevada decreased by 0.5 percent from last year settling at 5.4 percent. Taxable sales in January increased 5.3 percent year-over-year, while gaming revenue saw a sharp growth of 8.9 percent during the same time frame. The rise in gaming revenue over the past year was significantly boosted by the influx of sports fans and convention attendees, with visitor volume rising by 9.1 percent year over year.
Washoe County posted relatively weak economic signals. Reno-Sparks seasonally adjusted employment rose by 1,000 jobs in February. The unemployment rate saw a 0.2 percent increase from a year ago to 4.1 percent. The Reno-Sparks taxable sales decreased by 3.2 percent in January while gasoline sales in gallons increased by 2.2 percent over the same period. Visitor volume declined slightly by 0.8 percent in February. Gaming revenue, however, sharply increased by 7.7 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.
