The second estimate of U.S. real gross domestic product (GDP) for the third quarter of 2022 grew by an annual 2.9 percent, up by 0.3 percent from the advance estimate. The upward revision largely reflected a smaller- decline in business investment, but unsustainably strong net exports mainly drove the real GDP gain. U.S. nonfarm employment continued to increase, adding 263,000 jobs. Average hourly earnings surged by 0.6 percent month-over-month , signaling a tight labor market with a lower labor participation rate. The unemployment rate did not budge from 3.7 percent in November. Furthermore, the BLS still records about 1.7 jobs per unemployed person in October despite a recent decline in job openings. As a tight labor market helps keep inflation high with robust consumer spending, the Fed will likely continue to increase interest rates to bring down inflation to its target level. CPI inflation posted signs of cooling in October up 7.8 percent over last year. Retail sales in October rose strongly by 1.3 and 8.3 percent, respectively, month-over-month and year-over-year.
Nevada posted positive economic signals. Seasonally adjusted statewide employment increased strongly by 7,500 jobs in October. The unemployment rate, however, rose by 0.2 percent to 4.6 percent as the labor force participation rate continued to climb. Nevada sees 1.4 jobs per unemployed person in October. October gaming revenue jumped by 2.6 and 10.6 percent from last month and last year. Taxable sales in September also surged by 18.5 percent year-over-year.
Clark County’s economy continued to show strong performance. Seasonally adjusted employment in October added 4,900 jobs, while the unemployment rate edged up to 5.5 percent. October total Harry Reid passengers rebounded, up by 8.7 percent month-over-month, reaching its highest level in the sample. Visitor volume soared by 8.7 and 9.7 percent, respectively, month-over-month and year-over-year thanks to a substantial gain in convention attendance. Gaming revenue increased strongly by 9.9 percent year-over-year in October. Taxable sales rose by 20.5 percent year-over-year in September. October residential permits, however, continued to plummet by 39.0 percent from last year.
Washoe County displayed mixed economic signals. The Reno-Sparks seasonally adjusted employment lost 500 jobs, and the unemployment rate rose to 3.4 percent in October. Taxable sales climbed by 10.6 percent year-over-year in September. Gaming revenue and visitor volume in October gained 2.7 and 2.2 percent, respectively, year-over-year. October residential permits, however, decreased by 12.6 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.
