The “second” estimate for U.S. real gross domestic product (GDP) for the first quarter of 2017 grew at a 1.2 percent annualized rate, a half percentage point higher than the “first” estimate. The upward revision reflects larger gains in nonresidential fixed investment and personal consumption expenditure and smaller losses in state and local government spending. U.S. nonfarm employment added a lower-than-expected 138,000 jobs in May, and the job gain in April was revised downward to 174,000 from 211,000. The unemployment rate ticked down in May to 4.3 percent, the lowest level since 2001. April retail sales posted a robust 4.5 percent year-over-year increase. he “second” estimate for U.S. real gross domestic product (GDP) for the first quarter of 2017 grew at a 1.2 percent annualized rate, a half percentage point higher than the “first” estimate. The upward revision reflects larger gains in nonresidential fixed investment and personal consumption expenditure and smaller losses in state and local government spending. U.S. nonfarm employment added a lower-than-expected 138,000 jobs in May, and the job gain in April was revised downward to 174,000 from 211,000. The unemployment rate ticked down in May to 4.3 percent, the lowest level since 2001. April retail sales posted a robust 4.5 percent year-over-year increase.
The Nevada economy posted positive signals in its economic activity based on the most recent data. Seasonally adjusted statewide employment added 11,300 jobs in April, the largest gain since July 2016. Taxable sales in March posted a substantial 15.0 percent year-over-year increase thanks to strong gains in Clark and Storey Counties. March gasoline sales increased strongly by 4.3 percent year-over-year. Gaming revenue and total air passengers in April increased by 1.2 and 3.8 percent, respectively, compared to last year.
The Clark County economy also exhibited generally positive signals in its economic activity. Seasonally adjusted employment gained 7,500 jobs from March to April. April visitor volume for Clark County decreased slightly by 0.05 percent from a year ago due to a large 14.4 percent loss in Las Vegas convention attendees. Total McCarran passengers climbed by 3.8 percent during the same period. April Clark County gaming revenue rose by 1.4 percent compared to last year, while Las Vegas Strip gaming revenue decreased by 3.3 percent. March taxable sales and gasoline sales rose strongly by 9.8 and 5.0 percent, respectively, year-over-year. Residential housing permits and commercial permits in February decreased substantially by 58.2 and 32.6 percent, respectively, from last year.
Washoe County also experienced mostly positive signals in its economy activity. The Reno-Sparks seasonally adjusted employment added 600 jobs in April, and was up by 3.1 percent from last year. Taxable sales for Washoe and Storey Counties in March increased substantially by 49.0 percent from a year ago thanks to increased activity at the Tahoe-Reno Industrial Center. Gasoline sales also climbed strongly by 5.9 percent during the same period. April gaming revenue contracted by 3.1 percent from last year, while visitor volume gained 4.5 percent year-over-year. Residential housing permits in March posted a large 54.6 percent rise compared to a year ago, which mainly reflected an increase in multi-family units in Sparks.
Stephen M. Miller, Director, Jinju Lee, Economic Analyst, 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.