The first estimate of U.S. real gross domestic product (GDP) for 2023Q3 had an annualized growth rate of 4.9 percent, a significant increase above recent quarters. Consumer spending soared, particularly in services such as housing, utilities, healthcare, financial services, insurance and food, as well as in goods, notably non-durable items like prescription drugs and recreational goods/vehicles. The rise in private inventory investment was driven by the expanding manufacturing and retail trade. Seasonally adjusted U.S. nonfarm employment increased by 150,000 jobs in October. Average hourly earnings rose by 4.1 percent compared to last year. Retail sales in September experienced a gain of 0.7 percent month-over-month, making it the sixth consecutive month of growth. The Fed will likely hold the federal funds rate steady this fall, but resilient economic conditions could result in another hike this year.
Nevada posted positive economic signals in September. Seasonally adjusted statewide employment added 7,100 jobs, securing Nevada’s position as the state with the most substantial year-over-year employment growth in 2023. The unemployment rate remains unchanged at 5.4 percent, making Nevada the state with the highest unemployment rate for the month of August. August’s taxable sales increased by 4.4 percent year-over-year. After July’s record-high revenue of $1.4 billion, September’s gaming revenue generated $1.27 billion, a significant rebound after Augusts’ $1.21 billion failed to maintain the record high.
Clark County also displayed favorable economic signals. Seasonally adjusted employment in the Las Vegas metro area experienced a gain of 4,100 additional jobs in September. The unemployment rate remains at 5.8 percent in September, making it the highest among large metro areas. Taxable sales in August experienced a decrease of 3.5 percent year-over-year. August Harry Reid passengers rose by 3.6 percent month-over-month, while visitor volume only increased by 0.5 percent from July. Gross gaming revenue in September rose by 2.8 percent year-over-year. September maintains its robust year-over-year growth in residential permits, surging by 21.8 percent.
Washoe County continues to show somewhat mixed economic signals. The Reno-Sparks seasonally adjusted employment added 2,300 jobs in August. The unemployment rate remains at 4.4 percent, much higher than last year’s 3.8 percent. July’s taxable sales rose by 1.3 percent year-over-year. September’s air passengers and visitor volume increased substantially by 2.9 and 5.9 percent, respectively, year-over-year. Residential permits in September continue to decline by 47.9 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.
