The “advance” estimate of U.S. real gross domestic product (GDP) for the second quarter of 2022 continued to shrink for the second straight quarter, down by 0.9 percent at an annual rate. The decline largely reflected a drop in private inventory investment which was led by a slowdown in retail trade. Consumer spending, which accounts for roughly 70 percent of GDP, continued to climb thanks to increased spending on services, albeit at a slower pace as consumers cut their spending on goods. U.S. nonfarm employment experienced a strong gain despite rising recession fears, adding 528,000 jobs in July, fully recovering from the COVID-19 recession. The U.S. unemployment rate in July also fell to 3.5 percent, the same level as February 2020. Strong employment readings will support the Fed’s stated plans to continue to hike interest rates by 0.5 percent or more at their next meeting in September. CPI inflation dipped to 8.5 percent.
Nevada posted positive economic signals. Seasonally adjusted statewide employment added 7,800 jobs in June, bringing total employment above pre pandemic levels. The June unemployment rate dropped to 4.7 percent. June gaming revenue gained by 7.0 percent year-over-year and continued to top non-seasonally adjusted $1 billion for 16 consecutive months. May taxable sales rose by 13.5 percent from last year, but gasoline sales in gallons contracted by 2.9 percent over the same period.
Clark County displayed generally favorable signs in its local economic activity. Seasonally adjusted employment in June added 5,400 jobs. The unemployment rate in June remained unchanged at 5.3 percent, seasonally adjusted. Total airline passengers continued a strong gain, up by 2.3 percent from last month, hitting its record-high level thanks to pent-up demand for travel. June visitor volume, nevertheless, decreased by 3.5 percent month-over-month and remained 9.5 percent lower than its level in June 2019. June gaming revenue climbed by 9.2 percent from last year and May taxable sales also rose by 16.3 percent year-over-year. June residential permits experienced a year-over-year gain of 8.1 percent despite higher interest rates.
Washoe County’s economy showed mixed signals. The Reno-Sparks seasonally adjusted employment gained 1,100 jobs in June. The unemployment rate, however, increased to 2.8 percent. Taxable sales declined by 5.0 percent from last month but increased by 11.1 percent from last year. Gaming revenue, air passengers, and visitor volume in June experienced year-over-year losses, down by 3.1, 3.4, and 4.7 percent, respectively.
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.
