Revised estimates for fourth quarter 2012 show U.S. real GDP increasing at an annualized rate of 0.4 percent, a little higher than the “second” estimated rate of 0.1 percent. Private inventory investment, federal government spending, and exports made negative contributions. The reduction in federal government spending comes after a surge in defense spending during third quarter, which some saw as a response to possible sequestration. In addition, Europe’s problems affected the United States in the form of weak exports. Personal consumption expenditures, business fixed investment, and residential investment all made positive contributions for fourth quarter. U.S. nonfarm employment experienced tepid gains for March, adding only 88,000 jobs from February. The unemployment rate decreased slightly to 7.6 percent, mostly as the result of reduced labor force participation. The Kansas City Financial Stress Index remained near its long-run average in March, which suggests no financial headwinds, but bankers say that they are not seeing much loan demand and that regulators are inhibiting business lending. Business surveys and anecdotal reports show businesses delaying investment until after a number of policy uncertainties are resolved.
Ryan T. Kennelly
UNLV Center for Business and Economic Research
The Nevada economy evidenced mostly positive signs for February. The Nevada unemployment rate decreased from 9.7 percent to 9.6 percent. December visitor volume was 1.8 percent higher than a year earlier. Taxable sales continued to show strong growth, up 9.3 percent from last year. Gaming revenue had a strong month and was up 15.1 percent from February 2011.
For Clark County, seasonally adjusted employment increased from January to February by 100 jobs. The Las Vegas unemployment rate declined, from 10.1 percent in January to 10 percent in February. Total passengers at McCarran Airport were down 3.7 percent from a year earlier. Compared to a year ago, February visitor volume was down by 1.6 percent. Gaming revenue was 17.8 percent higher in February than a year earlier. Clark County’s taxable sales for January were 8.2 percent above those from a year earlier. Residential construction permits decreased from January to February.
The most recent data show mixed signals for Washoe County. Seasonally adjusted, Reno-Sparks’ employment remained constant from January to February. The seasonally adjusted Reno-Sparks’ unemployment rate declined slightly, from 9.8 percent in January to 9.5 percent in February. Compared to a year earlier, February visitor volume was up 2.3 percent, while total air passengers were down by 2.2 percent. Gaming revenues for February were slightly down from a year earlier. Residential construction permits increased in February.
A weak national economy is affecting Nevada in the form of slowing growth in tourism. Despite the slowing tourism, taxable sales continue to make large gains.
Ryan T. Kennelly
UNLV Center for Business and Economic Research
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