The third estimate of U.S. real gross domestic product (GDP) for the third quarter of 2022 rebounded, increasing 2.6 percent at an annual rate, after two consecutive quarters of declines. The robust rebound was largely due to unsustainably strong net exports. Consumer spending on services and government spending also contributed positively to the real GDP growth. Business investment and consumer spending on goods, however, contracted from the last quarter, which likely signals economic weakness. U.S. nonfarm employment experienced a larger-than-expected gain, adding 261,000 jobs. The unemployment rate, nevertheless, edged up to 3.7 percent from its 50-year low of 3.5 percent as unemployed persons rose by 306,000 to 6.1 million. The Fed raised the federal funds rate by another 75 basis points to a target range of 3.75 to 4 percent in November and stated that they will not stop rate hikes until inflation returns to normal levels. Even so, CPI inflation remained high in September at 0.4 and 8.2 percent month-over-month and year-over-year.
Nevada posted favorable economic signals. Seasonally adjusted statewide employment increased by 3,600 jobs in September. The unemployment rate, however, remained unchanged at 4.4 percent. September gaming revenue surged by 3.3 percent from last month. Taxable sales in August climbed robustly by 1.1 and 11.3 percent, respectively, month-over-month and year-over-year.
Clark County’s economy showed strong performance. Seasonally adjusted employment in September added 2,100 jobs, while the unemployment rate remained unchanged at 5.4 percent. September total Harry Reid passengers rebounded, up by 2.5 percent month-over-month, reaching its second-highest level in the sample. Visitor volume surged by 5.1 percent from last month and was only 4.9 percent lower than the level in September 2019, which narrowed from 12.6 percent in August. Gaming revenue also gained 5.5 percent year-over-year in September. Taxable sales rose by 11.5 percent year-over-year in August. September residential permits continued to drop by 16.9 percent year-over-year.
Washoe County displayed positive economic signals. The Reno-Sparks seasonally adjusted employment gained 1,900 jobs in September. The unemployment rate, however, increased to 3.2 percent. Taxable sales jumped by 13.3 percent year-over-year in August. Gaming revenue and visitor volume in September rose by 9.7 and 4.0 percent, respectively, from last year. September residential permits surged by 65.8 percent year-over-year despite higher interest rates.
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.
