Real gross domestic product (GDP) decreased by 0.3 percent annually in 2025 Q1. This decrease primarily reflected an increase in imports and a decrease in government spending, partly offset by increases in investment, consumption, and exports. Seasonally adjusted nonfarm employment rose by 177,000 jobs in March, with strong gains in health care and construction, partly offset by declines in retail trade. The unemployment rate remained unchanged at 4.2 percent.
Inflation eased, with the core Consumer Price Index (CPI) recording a 0.1 percent decrease month-over-month and increasing by 2.8 percent year-over-year in March. Retail sales increased by 1.5 percent compared to the prior month but remained 4.9 percent higher than a year earlier. Consumer confidence rebounded slightly, improving by 2.7 percent compared to February. Meanwhile, the Federal Reserve continued with its wait-and-see approach and kept the federal funds rate unchanged at 4.25 to 4.5 percent during its May meeting, citing heightened uncertainty regarding how tariffs will affect inflation.
Nevada’s economy posted mixed signals. Seasonally adjusted statewide employment rose by 0.1 percent month-over-month and 0.6 percent year-over-year. The state’s unemployment rate slightly decreased to 5.7 percent, remaining among the highest nationally. Gaming revenue totaled $1.28 billion in March, declining 1.1 percent year-over-year, while taxable sales in February dropped 2.0 percent annually. Air passenger traffic decreased 3.3 percent compared to a year ago, and gasoline sales were up 1.4 percent year-over-year.
Clark County mirrored statewide trends. Seasonally adjusted employment increased by 0.1 percent both month-over-month and year-over-year. Gaming revenue increased to $1.11 billion, down 1.8 percent from the previous year. Taxable sales fell 2.7 percent year-over-year . Visitor volume fell 7.3 percent year-over-year, while air passenger traffic dropped 3.9 percent compared to March 2024. Residential permits significantly increased to 1,365 units, representing a 15.2 percent increase from a year earlier.
Washoe County experienced a slightly stronger performance. Seasonally adjusted employment rose by 0.3 percent over the month and by 1.4 percent year-over-year. The unemployment rate held at 4.7 percent. Gaming revenue reached $81.8 million, reflecting a 7.0 percent annual gain. Air passenger traffic increased 6.2 percent year-over-year. Similarly, visitor volume rose 1.8 percent compared to March 2024. Residential permits increased 13.5 percent compared to the prior month but only 1.5 percent from the prior 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.
