The “advance” estimate for second quarter 2014 shows U.S. real gross domestic product increasing at an annualized rate of 4.0 percent, rebounding from the negative 2.1 percent growth experienced during first quarter 2014. Personal consumption expenditures, changes in private inventories, residential investment, non-residential fixed investment, and state and local government spending made positive contributions. Net exports and federal government spending made negative contributions. Consumer confidence and consumer sentiment rose for the most recent data. The Kansas City Financial Stress Index remained near its long-run average in June, which suggests no financial headwinds. Nonetheless, commercial paper outstanding is not yet showing much growth.
The Nevada economy evidenced positive signals with the most recent data. Seasonally adjusted, statewide employment increased by 5,300 (0.4 percent) jobs from May to June, and it was up 3.9 percent year-over-year. The Nevada unemployment rate fell from 7.9 percent to 7.7 percent. Taxable sales continued to show growth, up 8.0 percent from last year. Total air passengers were down 0.3 percent over the same time period. Gaming revenue experienced gains for the month and was up 14.4 percent from June 2013.
For Clark County, seasonally adjusted employment rose from May to June by 1,200 jobs and was up 3.1 percent year-over-year. The Las Vegas unemployment rate fell from 8.2 percent to 7.9 percent. Total passengers at McCarran Airport were up 1.3 percent from a year earlier. June visitor volume was up 3.1 percent from a year ago. Gaming revenue was 17.3 percent higher in June than a year earlier. Clark County’s taxable sales for May were 12.7 percent above those of a year earlier. Residential construction permits decreased from May to June. Commercial construction permits remained at a low level.
The most recent data show mixed signals for Washoe County. Seasonally adjusted, Reno-Sparks’ employment experienced an increase from May to June by 100 jobs. Total employment is up over a year ago, by 3.7 percent. The seasonally adjusted Reno-Sparks unemployment rate fell from 7.5 percent to 7.3 percent, mostly the result of a shrinking labor force. Compared to a year earlier, June visitor volume was down 1.6 percent. Total air passengers were down 4.2 percent from May 2013. Gaming revenues for June were down 2.1 percent from a year earlier. Residential construction increased from April to May, while commercial construction permits remained low.
The U.S. economy experienced moderate growth in second quarter 2014—rebounding from a weak first quarter. Consumer spending remains strong, and the housing market continues to improve.
Ryan T. Kennelly
UNLV Center for Business and Economic Research