The second estimate of U.S. real gross domestic product (GDP) for 2023Q3 expanded at an annual rate of 5.2 percent, revised up by 0.3 percentage points compared to the advance estimate. The remarkable increase in real GDP mainly reflected strong consumer spending, as well as increased activity in business investment especially in inventory investment driven by expanding manufacturing and retail trade, despite high-interest rates.
Seasonally adjusted U.S. nonfarm employment increased by a stronger-than-expected 199,000 jobs in November, partly reflecting the return of manufacturing workers from a strike. The November unemployment rate ticked down to 3.7 percent from the previous month with an increased labor force participation rate. Average hourly earnings rose by 4.0 percent compared to last year. Retail sales in October experienced a 0.1 percent month-over-month decline but climbed by 2.5 percent year-over-year. Thus, the Fed will likely keep the federal funds rate steady this winter.
Nevada exhibited positive economic signals in October. Seasonally adjusted statewide employment increased by 5,500 jobs. The unemployment rate in October remained unchanged at 5.4 percent, still marking the highest unemployment rate among states. Taxable sales in September rose by 1.0 percent year-over-year. October’s gaming revenue increased robustly by 3.5 and 2.7 percent, respectively, month-over-month and year-over-year.
Clark County also displayed generally favorable economic signals. Seasonally adjusted employment in the Las Vegas metro area experienced a gain of 1,600 jobs in October. The unemployment rate edged down to 5.7 percent in October, leaving it as the highest among large metro areas. Taxable sales in September remained stagnant compared to last year, while gasoline sales in gallons declined by 0.9 percent over the same period. Although October visitor volumes declined by 0.4 percent from the previous year, October Harry Reid air passengers and gross gaming revenue rose by 6.0 and 2.9 percent, respectively. October residential permits posted a robust year-over-year gain of 32.1 percent.
Washoe County showed somewhat mixed economic signals. The Reno-Sparks seasonally adjusted employment added 800 jobs in October. The unemployment rate remains at 4.4 percent, significantly higher than last year’s 3.8 percent. September’s taxable sales climbed by 3.0 percent year-over-year. October air passengers rose by 2.8 percent year-over-year, while visitor volume fell by 5.2 percent over the same period. Residential permits in September continued to contract by 1.6 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.
