The ongoing federal government shutdown has delayed several key data releases, including third quarter real gross domestic product (GDP), September employment figures, among others. Real GDP grew at an annualized rate of 3.8 percent in the second quarter of 2025, supported by consumer spending and lower imports. August employment held steady at 159.54 million, up 0.9 percent year-over-year, while the unemployment rate edged up to 4.3 percent from 4.2 percent in July. Inflation data were released amid the shutdown because of the need to index Social Security payments in 2026. The September Consumer Price Index (CPI) increased 0.3 percent month-over-month (MoM) and 3.0 percent year-over-year (YoY). Core CPI rose 0.2 percent MoM and 3.0 percent YoY. Retail sales gained 0.6 percent in August and 5.0 percent from a year ago, reflecting ongoing consumer strength despite a softer labor market. The Federal Reserve cut interest rates by 25 basis points in its October meeting, lowering the target range to 3.75-4.0 percent, in response to slowing job growth and moderating inflation.
Nevada’s economy softened amid weaker tourism. Seasonally adjusted employment fell by 3,800 jobs, while the unemployment rate edged down to 5.3 percent from 5.4 percent a month earlier. August taxable sales increased by 6.8 percent YoY, largely reflecting strong gains in Washoe and Storey counties. Gaming revenue in September declined 2.3 percent YoY, and air passengers also decreased by 5.7 percent over the same period.
Clark County’s economy weakened modestly. August employment decreased by 4,300 jobs and was 0.4 percent below last year’s level. The unemployment rate held steady at 5.6 percent. Taxable sales in August rose 1.9 percent YoY but remained down 1.2 percent year to date. Gaming revenue in September declined by 2.9 percent YoY. Visitor volume and air passengers continued its YoY losses, down by 8.0 and 6.4 percent, respectively, resulting in year-to-date declines of 7.3 and 4.8 percent.
Washoe County posted relatively favorable conditions compared to Clark County, supported by its more diversified economy. August employment fell by 400 jobs but was 0.3 percent higher than a year earlier. The unemployment rate declined to 4.4 percent. August taxable sales surged 31.6 percent YoY, contributing to a 7.6 percent year-to-date increase. In September, gaming revenue and air passengers each rose 2.3 percent YoY, while visitor volume decreased 4.8 percent during the same period.
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.
