Monthly Editorial Departments

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

Hurricane season brought loss of life, devastation and economic disruption to the Gulf States. Though this region produces only about 2 percent of the national output, the region is rich in energy. As such, energy-supply disruptions loomed large and shortages appeared immediately. Prices jumped, but quickly receded as oil was released from the national reserve, supplies were … [Read more...] about January 2006: Business Indicators

The strong surge of energy prices in recent months follows a wave of increased demand for energy worldwide. This stepped-up demand is largely the result of marked increases in growth among Asian countries, mainly China and India. Energy-intensive industries and traders scrambled to secure sources, pushing prices up further. Then, two hurricanes shut off some Gulf oil production … [Read more...] about December 2005: Business Indicators

Hurricanes have destroyed homes and businesses in the Gulf Coast area, to say the least. Other regions are affected, particularly industries and regional economies dependent on oil. In Nevada we are less adversely affected, as we do not get our gasoline and other petroleum products from the Gulf Coast region. Still, we will likely see some effects, such as higher costs for … [Read more...] about November 2005: Business Indicators

Many pundits who missed the 2000 stock market bubble are now getting press coverage by predicting a housing bubble. The housing market bubble pundits might have a point, however. Many impacts invariably follow an economic event or shock, such as the cascading corporate scandals that followed the overvalued stock market of the 1990s. Moreover, economic shocks usually do not … [Read more...] about October 2005: Business Indicators

The data, across a wide range of measures, support what we hear: the economy is doing well, with more favorable than unfavorable financial reports. The U.S. price and employment picture shows stable prices, even in the face of sharp increases in oil prices, and a steadily – if belatedly – improving job market. Inflation remains at less than a 3 percent growth rate, up 2.5 … [Read more...] about September 2005: Business Indicators

Nevada’s economy continues to outperform the U.S. economy. U.S. job growth, picking up recently, is still growing at a modest rate, up 1.5 percent year-over-year for the month of April. The Silver State, on the other hand, continues to create jobs, up a robust 6.6 percent measured annually over the same April-to-April period. In short, the better than 5 percent difference … [Read more...] about August 2005: Business Indicators