The federal government shutdown that began in late 2025 continues to delay the release of major national economic data, including third quarter real GDP and October employment data. Available indicators show real GDP grew 3.8 percent in the second quarter, supported by steady spending. Labor market conditions softened in September, with employment up 119,000 jobs and the unemployment rate rising to 4.4 percent. Inflation began to climb again after easing to a 4-year low of 2.3 percent in April 2025.: The consumer price index (CPI) increased 0.3 percent month-over-month (MoM) and 3.0 percent year-over-year (YoY), while Core CPI rose 0.2 percent MoM and 3.0 percent YoY. Retail sales were stable, up 0.2 percent MoM and 4.3 percent YoY. Housing starts fell 6.0 percent YoY, and auto and truck sales declined 5.6 percent YoY, reflecting weaker interest-sensitive demand.
Nevada’s economy posted mixed conditions. Labor market weakness continued while spending indicators strengthened. Seasonally adjusted employment declined by 3,800 jobs in August, a 0.2 percent decrease from the prior month and unchanged from last year. The unemployment rate fell slightly to 5.3 percent. September taxable sales increased 12.2 percent YoY, and October gaming revenue rose 5.0 percent YoY, signaling steady consumer activity. October air passengers, however, remained 7.0 percent below last year.
Clark County’s economy softened modestly. Employment declined by 4,300 jobs in August, a 0.4 percent MoM decrease and 0.4 percent below last year’s level. The unemployment rate remained at 5.6 percent. September taxable sales increased 8.1 percent YoY. Visitor volume and air passengers in October decreased by 4.5 percent and 7.6 percent, respectively, from last year. Despite continued YoY declines in visitor volume, October gaming revenue rose 5.0 percent YoY, supported by steady visitor spending. Residential permitting weakened further, falling 28.5 percent MoM and 45.6 percent YoY.
Washoe County continued to outperform the southern region in many categories. Employment declined by 400 jobs in August, a 0.1 percent MoM decrease, but remained 0.3 percent above last year. The unemployment rate declined to 4.4 percent. Taxable sales rose 31.9 percent YoY, continuing a strong upward trend. October gaming revenue increased by 4.4 percent YoY. Visitor volume and air passengers in October also rose YoY by 1.9 and 0.5 percent, respectively.
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.
