The second estimate for U.S. gross domestic product (GDP) for 2024Q2 rose to a 3.0 percent annual rate — a 0.2 percent increase from the advanced estimate, driven by an upward revision in consumer spending. The revision was partly offset by downward revisions to private inventory investment, residential and nonresidential fixed investment, and government spending. A surge in imports also contributed negatively to real GDP growth, but overall, the economy exhibited solid performance despite these counterbalancing factors.
Seasonally adjusted U.S. non-farm payroll increased by 142,000 jobs in August, much lower than the 202,000 average monthly gain over the prior 12 months. August’s unemployment rate slightly decreased to 4.2 percent. Annual average hourly earnings increased by 3.8 percent, to $35.21. Retail sales in July increased by 2.7 percent year-over-year, slightly lower than the CPI inflation of 2.9 percent over the same period. In its August meeting, the FOMC kept the federal funds rate unchanged, but will likely cut rates in September, given the recent softening in the labor market and increasing risk of recession.
Nevada posted mixed economic signals. Seasonally adjusted employment added 1,500 jobs in July. The unemployment rate increased to 5.4 percent from 5.2 percent in the prior month. June taxable sales declined by 0.5 percent year-over-year. July gaming revenue experienced a significant decline, dropping 6.9 percent compared to the previous year. Nevada air passengers posted a year-over-year increase of 4.1 percent in June.
Clark County exhibited mostly negative economic signals. Seasonally adjusted employment decreased by 300 in July. The unemployment rate surged to 5.8 percent in July from 5.5 percent in June. Taxable sales in June decreased even further from last month, resulting in a 1.1 percent decrease year-over-year. July gaming revenue and visitor volume also experienced a 7.4 and 0.6 percent decrease, respectively, from last year. July residential permits declined by 6.4 percent year-over-year.
Washoe County displayed generally unfavorable economic signals. Reno-Sparks seasonally adjusted employment experienced a loss of 300 jobs in July. The unemployment rate continued to increase by 0.2 percentage points to 4.6 percent. Taxable sales in June rebounded, rising by 3.0 percent from last year after a year-over-year decline in the previous month. Visitor volume and gaming revenue, however, continued to decline year-over-year, down by 3.9 and 4.9 percent, respectively, in July. Residential permits in July increased slightly by 2.0 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.
