Source: UNLV Center for Business and Economic Research
The United States is experiencing continued growth with largely positive economic signals from several key indicators. The second estimate of real gross domestic product (GDP) for 2026Q1 continues to expand at a moderate pace, with annualized and year-over-year growth rates of 1.6 and 2.6 percent, respectively, slightly lower than the advance estimates. Seasonally adjusted U.S. nonfarm employment posted a stronger-than-expected gain of 172,000 jobs in May, mainly driven by job gains in leisure and hospitality, local government, and healthcare. The unemployment rate remained flat at 4.3 percent for the third month in a row.
April retail sales saw a strong year-over-year increase of 4.9 percent, while housing starts grew 4.6 percent. May auto and truck sales rose 3.2 percent from the previous year. The consumer price index (CPI) inflation accelerated to 4.2 percent from 3.8 percent last month, driven by a 23.5 percent surge in energy prices. Core CPI (excluding food and energy), however, increased more modestly by 2.8 percent from 2.7 percent last month, which together may support the Fed in keeping the interest rate unchanged.
Nevada Regional Signals
Nevada generally experienced positive economic signals. Seasonally adjusted statewide nonfarm employment gained 2,900 jobs in April, while the unemployment rate held steady at 5.3 percent for the fourth month in a row. March taxable sales surged 15.3 percent year-over-year. April gaming revenue rose robustly by 5.3 percent from a year earlier, while air passengers declined by 6.3 percent over the same period.
Clark County saw mixed economic signals. Seasonally adjusted nonfarm employment gained 300 jobs in April. The unemployment rate fell slightly from 5.6 percent to 5.5 percent. March taxable sales rose 8.9 percent year-over-year. April visitor volume fell by 1.5 percent year-over-year, after March’s recording its first year-over-year increase in 14 months. Air passengers decreased by 7.1 percent during the same period. April gaming revenue, however, increased by 4.8 percent from last year, driven by a 6.6 percent gain on the Las Vegas Strip. Residential permits dropped 68.7 percent year-over-year.
Washoe County exhibited generally favorable signals. Seasonally adjusted nonfarm employment showed no change in April month-over-month. The unemployment rate fell slightly from 4.2 percent to 4.1 percent. Taxable sales rose strongly by 34.8 percent year-over-year. Unlike Clark County, April tourism indicators posted a solid performance. Gaming revenue, air travel, and visitor volume all grew by 12.7, 6.1, and 13.3 percent, respectively, from a year earlier. Residential permits also jumped 152.2 percent year-over-year.
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.
