The third estimate of U.S. real gross domestic product (GDP) for 2023Q3 increased at an annual rate of 4.9 percent, marking a 0.3 percentage point decrease from the second estimate. Although the update primarily reflected a downward revision in consumer spending, the robust growth in real GDP was still mainly driven by strong consumer spending and heightened activity in business investment.
Seasonally adjusted U.S. nonfarm employment saw an increase of 216,000 jobs in December, surpassing expectations and largely reflecting gains in government, healthcare, and leisure and hospitality sectors. A downward revision of 71,000 jobs occurred in employment for the previous two months. The December unemployment rate remained unchanged at 3.7 percent. Retail sales in November grew by 4.1 percent compared to last year, posting the fastest increase since February 2023. The Fed is expected to hold the federal funds rate unchanged in the short run and possibly consider beginning cuts this year, contingent upon how economic conditions evolve.
Nevada exhibited positive economic signals. Seasonally adjusted statewide employment increased by 5,100 jobs in November. The unemployment rate in November stayed unchanged at 5.4 percent, still the highest unemployment rate among states. Taxable sales in October climbed by 2.1 percent year-over-year. November’s gaming revenue surged by 12.6 percent from last year, the second highest on record, boosted by the Formula 1 Las Vegas Grand Prix.
Clark County also displayed generally favorable economic signals. Seasonally adjusted employment in the Las Vegas metro area added 4,800 jobs in November. The unemployment rate remained the highest among large metro areas after edging down to 5.6 percent in November October taxable sales and gasoline sales in gallons rose by 1.6 and 1.4 percent, respectively, year-over-year. Gaming revenue in November jumped by 14.3 percent from last year despite only a 0.7 percent increase in visitor volume. November Harry Reid air passengers increased by 6.1 percent from last year. November residential permits continued a solid year-over-year gain of 22.5 percent.
Washoe County showed mixed economic signals. The Reno-Sparks seasonally adjusted employment lost 300 jobs in November. The unemployment rate, nevertheless, decreased slightly to 4.3 percent. October’s taxable sales dropped sharply by 7.5 percent year-over-year. November air passengers and visitor volume also declined by 0.6 and 3.5 percent, respectively, from last year, while gaming revenue climbed by 2.1 percent over the same period. Residential permits rebounded in November by 59.5 percent year-over-year after 13 consecutive declines.
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
