The advanced estimate of U.S. real gross domestic product (GDP) for 2023Q4 increased at an annual rate of 3.3 percent. While real GDP experienced robust growth driven by strong consumer spending and increased business investment activity, the deceleration observed in the fourth quarter from the 4.9 percent third quarter was mainly due to slowdowns in federal government spending and consumer spending. Despite consumer spending maintaining its robust nature, it did slowdown when compared to the previous quarter.
Seasonally adjusted U.S. nonfarm employment increased by 353,000 jobs in January, reflecting gains in retail trade, healthcare, and professional and business services. Employment figures for November and December underwent a positive revision, increasing by 126,000 jobs. The January unemployment rate remained unchanged at 3.7 percent. The Fed is expected to hold the federal funds rate unchanged in the short run and possibly consider delaying cuts this year, as the economy continues to exhibit strength.
Nevada exhibited positive economic signals. Seasonally adjusted statewide employment increased by 2,100 jobs in December. The unemployment rate in November stayed unchanged at 5.4 percent, still the highest unemployment rate among states. Taxable sales in November climbed by 7.0 percent year-over-year. Gaming revenue jumped by 9.0 percent in December compared to last year.
Clark County also displayed generally favorable economic signals. Seasonally adjusted employment in the Las Vegas metro area added 800 jobs in December. The unemployment rate remained the highest among large metro areas after edging down to 5.5 percent in December. November taxable sales rose by 5.5 percent, respectively, year-over-year. Gaming revenue in December increased by 9.8 percent from last year despite only a 1.8 percent increase in visitor volume. December Harry Reid air passengers surged by 10.2 percent from last year. November residential permits continued a solid year-over-year gain of 187.0 percent.
Washoe County showed mixed economic signals. The Reno-Sparks seasonally adjusted employment lost 800 jobs in December. The unemployment rate, nevertheless, decreased slightly to 4.3 percent. November’s taxable sales rose sharply by 9.4 percent year-over-year. November air passengers increased by 9.1 percent, while December’s visitor volume declined by 0.4 percent from last year. Gaming revenue fell by 2.9 percent year-over-year. December’s residential permits decreased after having rebounded in November, this time by 4.3 percent year-over-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.
