Business Indicators

Housing markets continue to realign, both nationally and in the Silver State. Not surprisingly, growth rates for key spending indicators are also down as a result of tightened housing mortgages and slower sales. Still, overall growth continues, though more slowly than in recent memory. The Nevada economy runs at or near capacity levels for almost all areas but housing … [Read more...] about July 2007: Business Indicators

Housing remains to be the weak sector in an otherwise growing economy, both nationally and in Nevada. Those who argued that there would be no slowdown in 2007 are in full retreat. Similarly, those foretelling doom continue to wait. Of course, the housing slowdown that began in 2006 has stalled some business activities and has created unknowns that cloud the future of some … [Read more...] about June 2007: Business Indicators

Some softening is apparent for Las Vegas and Reno in the recent indicators, though overall conditions remain favorable. The number of jobs is down for January 2007 in both Las Vegas and Reno, 1.3 and 2.8 percents, respectively. Job growth for January 2007 is up by more than 3 percent, however. Still unemployment rates remain below 5 percent. These rates are 4.7 for Las Vegas … [Read more...] about May 2007: Business Indicators

Job growth is one of a few key indicators for assessing current economic health. The most recent information for the U.S. economy shows more than 150,000 new jobs created and the unemployment rate at 4.5 percent. This job strength comes while two large sectors, housing and autos, have weakened. The slack in housing and automobiles has lowered expectations for growth in 2007. … [Read more...] about March 2007: Business Indicators

Residential construction and consumer spending grew at above average rates over the first five years of the new century. Starting at mid-year 2006, however, new home construction took a sharp downturn. A national housing recession is underway, though there are marked differences among regions of the country. Permitting is down by double-digit rates from year ago levels in Las … [Read more...] about February 2007: Business Indicators

We’ve been looking for a slowdown in the high-flying Nevada economy – and the most recent data show a more measured pace of activity. To be sure, housing activity, as reflected in monthly permitting, is down markedly in both Las Vegas and Reno (down 40 percent and 61 percent, respectively, for residences). A slowdown in housing has some benefits, however, helping other … [Read more...] about January 2007: Business Indicators

The most recent (September 2006) data for residential permits for both Las Vegas and Reno show a pronounced slowdown, dropping 35.6 percent and 45.4 percent, respectively. These sharp declines reflect market corrections to housing activity that have been in the wind for some time. After the dot-com stock-market decline, housing increasingly became an investment of choice for … [Read more...] about December 2006: Business Indicators

Amid some pessimism, we see a good U.S. unemployment rate below 5 percent, but inflation topping out at the upper end of the comfort range. The core consumer price index (CPI) is growing at an annual rate of 2.8 percent. With inflation posing a concern, the Federal Reserve has moved the Federal Funds rate from 1 percent to 5.25 percent in a series of steps. However, with the … [Read more...] about November 2006: Business Indicators

Growth, both in the U.S. and Nevada, seems to be decelerating. However, most importantly, conditions remain elevated. Jobs are abundant, though average wages adjusted for purchasing power have not improved. This led more than half of respondents to a recent national survey to report they are not better off than previously. In addition, gasoline prices and global political … [Read more...] about September 2006: Business Indicators

Both current U.S. and Nevada economic conditions remain favorable. Moreover, the near-term outlook is good. To be sure, gasoline prices have continued to trend upward. The current energy situation reflects continued strong growth in world demand without increased supplies. But, the impact of higher fuel prices has not been as adverse as in the early 1980s, when fuel prices were … [Read more...] about July 2006: Business Indicators

The Fed has continued its course of pushing the short-term federal funds rate upward, as it foresees further expansion with increasing prospects for inflation. But, by all accounts, the Fed will soon pause to assess the effectiveness of the interest-rate increases. Recent events in the Middle East may well be the key reason for a reassessment. Uncertainties have pushed oil … [Read more...] about June 2006: Business Indicators

Having weathered sharp price increases for energy, inflation-adjusted Gross Domestic Product (GDP) is up 3.2 percent on an annual basis, though fourth-quarter numbers were down as a result of disruptions tied to hurricane impacts. After a slow recovery, job growth nationally shows signs of a breakout from the doldrums which set in during 2001. As a result, the U.S. economy … [Read more...] about May 2006: Business Indicators

Nevada continues along a robust expansion path, continuing to outdistance the U.S. economy. Job growth in the Silver State remains strong, up 5.8, 7.0 and 3.3 percent, respectively, for Nevada, Las Vegas and Reno on a year-over-year basis. This compares favorably to U.S. job-growth of 1.6 percent. Moreover, this record of superior Nevada job-growth performance has held since … [Read more...] about April 2006: Business Indicators

It has been a splendid year for the Nevada economy. Job growth for 2005 reached 5.8 percent, 7.0 percent and 3.3 percent levels for Nevada, Las Vegas and Reno, respectively. This strong picture comes at a time in which the national job growth increased modestly, up 1.5 percent. Moreover, Nevada’s strong growth in 2005 follows impressive growth in 2004, while U.S. jobs grew only … [Read more...] about March 2006: Business Indicators

Looking at the current national data, we see good numbers – growth after inflation of 3.6 percent, unemployment at 5 percent and inflation in check. But, despite strong growth during 2005 and forecasts of economic strength continuing in 2006, concerns are mounting. Though fuel prices increased sharply in 2005 without triggering a downturn, the winter heating season will soon … [Read more...] about February 2006: Business Indicators