The second estimate of U.S. real gross domestic product (GDP) for 2023Q2 expanded by an annualized 2.1 percent, revised down by 0.3 percent from the advance estimate reported last month. The downward revision mostly reflected lower business investment than previously expected, which was partly offset by larger-than-expected government spending. Overall, the real GDP for 2023Q2 remained robust despite expectations of a slowdown fueled by higher interest rates.
Seasonally adjusted U.S. nonfarm employment added 187,000 jobs in August, continuing to slow with an additional combined downward revision of 110,000 jobs for the previous two months. The August unemployment rate rose to 3.8 percent, largely due to increases in the labor force participation rate. Wage growth, however, continued to outpace inflation, rising by 4.3 percent from last year. Retail sales in July experienced a stronger-than-expected gain, up by 3.2 percent year-over-year. The Fed will likely hold the federal funds rate steady this fall, but resilient economic conditions could result in another hike this year.
Nevada posted positive economic signals. Seasonally adjusted statewide employment added 1,300 jobs in July. The unemployment rate edged down to 5.3 percent but is still the highest unemployment rate of all states and the District of Columbia. June taxable sales increased by 2.8 percent year-over-year. July gaming revenue rebounded strongly after two consecutive months of decline, up by 6.7 percent to the record-high revenue of $1.4 billion.
Clark County also displayed favorable economic signals. The Las Vegas metro seasonally adjusted employment in July added 1,700 jobs. The unemployment rate, however, stayed unchanged at 5.8 percent from last month, remaining the highest among large metro areas. Taxable sales in June experienced a weak gain of 1.6 percent year-over-year. July Harry Reid passengers and visitor volume rose by 1.7 and 1.3 percent, respectively, from last year, and gross gaming revenue in July jumped by 7.5 percent over the same period. July residential permits also experienced a strong year-over-year gain of 91.0 percent amid low home inventories.
Washoe County showed somewhat mixed economic signals. The Reno-Sparks seasonally adjusted employment lost 400 jobs in July, and the unemployment rate rose to 4.3 percent, much higher than last year’s 3.6 percent. June taxable sales, however, climbed substantially by 7.8 percent year-over-year. July gaming revenue and visitor volume also increased substantially by 6.1 and 29.2 percent, respectively, year-over-year. Residential permits in July continued to decline by 8.1 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.
