The data on this page predate the terrorist attacks of September 11. Generally speaking, the national and regional economies show mixed conditions. With the events of September 11, however, expectations of recession have developed. Consumers have joined investors in taking a more cautious outlook in making future expenditures.
The most recent data reveal similar conditions for the state of Nevada and the U.S. The indicators suggest continued weakening – that is, economies teetering on a downturn. This assessment is best revealed in the declining levels of employment and rising unemployment rates. The most recent unemployment rates are up compared to year-ago levels for the U.S., Nevada, Las Vegas and Reno economies. These rates range from 3.7 percent (Washoe) to 5.2 percent (Clark). Though these levels are low relative to previous periods of adversity, the hard-hit travel and tourism sector and the general economic slowdown foretell further deterioration in employment conditions in the months ahead.
Housing starts, which have been strong through March of 2001, show signs of slowing nationally. A reduction in consumer spending – the largest component of gross national product – brought about by a sustained slowdown in housing, is likely in the current environment. In addition, auto and truck sales, which show no signs of weakness to date, are also likely to soften in the near future.
Nevada, like the U.S., has been on the verge of an economic downturn. Its tourist-based economy has been hard hit by the events of September 11. These events have, at least in the short run, slowed economic activity measurably. Should two quarters of decline occur in overall activity, Nevada will experience its first recession since 1991. The current conditions are somewhat similar to the 1990-91 period, with the concern for travel safety and a national downturn. All in all, the last half of 2001 and the beginning of 2002 is likely to be a period of weak economic performance.