Real gross domestic product (GDP) increased at an annualized rate of 3.0 percent in the second quarter of 2025. The gain was driven by consumer spending and falling imports, which had surged in the prior quarter ahead of anticipated tariffs. Seasonally adjusted U.S. nonfarm employment only added 73,000 jobs in July, with revisions showing 258,000 fewer jobs than previously reported for June and May. The unemployment rate edged up to 4.2 percent in July from 4.1 percent in June.
Inflation showed upward movement. The Consumer Price Index (CPI) rose 2.7 percent year-over-year in June, while the core CPI (excluding food and energy) increased 2.9 percent. Retail sales were up 0.6 percent month-over-month and 3.9 percent annually. The Federal Reserve left interest rates unchanged at its July meeting, but expectations for a September rate cut have increased based on weaker-than-expected recent employment figures.
Nevada’s economy presented mixed signs. Seasonally adjusted employment declined by 0.3 percent in June and was up only 0.3 percent year-over-year. The unemployment rate edged down to 5.4 percent; a 0.1 percentage point drop from May. Gaming revenue rose 3.5 percent year-over-year in June to $1.33 billion, while air passenger volume fell 5.9 percent over the same period. Taxable sales in May posted a weak gain of 0.7 percent from last year.
Clark County displayed unfavorable signs in ongoing economic activity. Employment declined 0.2 percent month-over-month and year-over-year in June. The unemployment rate held steady at 5.7 percent. June gaming revenue increased 3.5 percent year-over-year, while visitor volume dropped 10.8 percent during the same period. May taxable sales were 1.8 percent lower than a year earlier. Residential permits plunged 60.1 percent year-over-year in June, indicating continued softness in the housing sector. Recent weak tourism numbers stem from fewer international travelers and reduced travel spending by U.S. consumers and businesses amid economic uncertainty, despite summer trending to be a slower time, in general, in Las Vegas.
Washoe County reported stronger signals. Though employment fell 0.6 percent month-over-month in June, it was up 0.5 percent from the prior year. The unemployment rate remained unchanged at 4.5 percent. June gaming revenue rose 4.9 percent from a year ago to $91.45 million. Taxable sales were up 3.7 percent year-over-year in May. Both air passenger and visitor volumes in June, however, decreased by 1.0 percent and 3.7 percent year-over-year, respectively. Residential permits in June also declined by 23.1 percent from a year earlier.
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.
