The third estimate of U.S. real gross domestic product (GDP) for 2023Q2 remained unchanged from the second estimate reported last month, with an annualized expansion of 2.1 percent. The third estimate update was shaped by a decrease in consumer spending and imports, alongside upward revisions in nonresidential fixed investment, exports, and inventory investment, mitigating the decline. Seasonally adjusted U.S. nonfarm employment increased by 336,000 jobs in September. Average hourly earnings rose by 4.3 percent from last year. Retail sales in August experienced a gain of 0.6 percent month-over-month, making it the fifth consecutive month of growth. The Fed will likely hold the federal funds rate steady this fall, but resilient economic conditions could result in another hike this year.
Nevada posted positive economic signals. Seasonally adjusted statewide employment added 9,100 jobs in August, securing Nevada’s position as the state with the most substantial year-over-year employment growth so far in 2023. The unemployment rate increased by 0.1 percentage point to 5.4 percent. Nevada has consistently witnessed growth in its labor force, marked by an increase in both the number of employed and unemployed individuals. July’s taxable sales increased by 8.0 percent year-over-year. Now, despite its record-high revenue of $1.4 billion last month, July’s gaming revenue was unable to sustain its rebound, experiencing a significant 13.9 percent month-over-month decline.
Clark County also displayed favorable economic signals. Seasonally adjusted employment in the Las Vegas metro area experienced a gain of 8,500 additional jobs in August. The unemployment rate, however, increased by 0.3 percentage points to 6.1 percent in August, remaining the highest among large metro areas. Taxable sales in July experienced a significant increase of 8.0 percent year-over-year. August Harry Reid passengers fell by 5.0, while visitor volume increased by 4.2 percent, from last year. Gross gaming revenue in August fell by 8.7 percent over the same period. August maintains its robust year-over-year growth in residential permits, surging by an impressive 72.7 percent.
Washoe County continues to show somewhat mixed economic signals. The Reno-Sparks seasonally adjusted employment added 1,200 jobs in August. The unemployment rate rose to 4.5 percent, much higher than last year’s 3.8 percent. July’s taxable sales fell substantially by 9.7 percent year-over-year. August’s air passengers and visitor volume increased substantially by 7.5 and 21.2 percent, respectively, year-over-year. Residential permits in August continued to decline by 21.6 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.
