The third estimate of U.S. real gross domestic product (GDP) for 2022 Q4 expanded by 2.6 percent annualized rate, falling by 0.1 and 0.3 percent from the second and advanced estimates, respectively. Overall, the real GDP increase reflected increases in business inventories, consumer spending on services, and government spending, which were partly offset by decreases in business investment and consumer spending on goods. By the time of this publication, the advance estimate for U.S. real GDP 2023 Q1 will have been released.
Seasonally adjusted U.S. nonfarm employment experienced a sturdy gain of 236,000 jobs in March, with 72,000 jobs in leisure and hospitality. Job openings per unemployed person, however, declined to 1.7 in February from nearly 2.0 in December 2022, signaling some loosening of the labor market. The growth in Retail sales in February decelerated at 5.4 percent year-over-year, the lowest since December 2020, despite CPI inflation of 6.0 percent. The Fed increased the federal funds rate from 4.75 to 5 percent during the March meeting to control inflation despite recent banking-risk concerns. Most recent economic data indicate a U.S. economic slowdown. In addition, the IMF projects the world economy to experience the lowest growth since 1990 at around 3 percent over the next five years.
Nevada posted positive economic signals. Seasonally adjusted statewide employment gained 7,200 jobs in February, but with only 400 net jobs added in leisure and hospitality. The unemployment rate remained at 5.5 percent, the highest in the nation. February gross gaming revenue and total air passengers continued to soar by 11.2 and 23.0 percent, respectively. Taxable sales in January climbed by 8.2 percent from last year.
Clark County also displayed generally favorable economic signals. The Las Vegas-Paradise seasonally adjusted employment in February added 5,800 jobs. The unemployment rate, however, rose by 0.1 percent to 5.7 percent from last month. February Harry Reid passengers, gross gaming revenue, and visitor volume jumped by 24.9, 13.8, and 16.8 percent, respectively, year-over-year. Taxable sales in January also rose strongly by 11.4 percent year-over-year. February residential permits, nevertheless, continued to fall by 58.2 percent from last year.
Washoe County showed unfavorable economic signals. The Reno-Sparks seasonally adjusted employment added 1,600 jobs in February. The unemployment rate, however, edged up to 3.8 percent in February. January taxable sales declined by 1.6 percent from last year despite high inflation. February gross gaming revenue and residential permits also decreased by 8.1 and 10.3 percent, respectively, year-over-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.
