The “advance” estimate of U.S. real gross domestic product (GDP) for the third quarter of 2021 only increased 2 percent at an annual rate, much lower than expectations. The weaker-than-expected growth in the third quarter largely reflected a deceleration in consumer spending. U.S. nonfarm employment in October, however, experienced a rebound after two consecutive months of weaker-than expected readings, adding 531,000 jobs. Job growth was widespread, with the largest gain of 164,000 in leisure and hospitality. Government was the only main sector that experienced a loss of 73,000 jobs. Average hourly earnings for October continue to rise by 0.4 percent from last month as the labor shortage continued. Retail sales in September continued a surprising gain of 0.7 percent month-over-month despite supply constraints, which partly translated into higher inflation. The most recent labor market data show the economy regaining momentum, while supply and labor constraints and inflation still add uncertainty.
Nevada’s economic activity posted mixed signals. Seasonally adjusted statewide employment added 4,400 jobs in August. September gaming revenue decreased slightly from last month but increased by 9.5 percent from two years ago. August taxable sales fell on a month-over-month basis but remained significantly higher by 16.5 percent from its level two years ago.
Clark County also displayed mixed signs in its local economic activity. The unemployment rate in September fell by 0.2 percent to 8.0 percent. September gaming revenue increased by 1.2 percent month-over-month despite a 1.9 percent decrease in visitor volume, benefitting from a 12.2 percent jump in table game drop. September visitor volume contracted by 1.9 and 18.2 percent, respectively, from last month and two years ago. August taxable sales recorded its second consecutive monthly loss but climbed by 16.2 percent from August 2019. September residential permits plummeted by 27.3 percent year-over-year.
Washoe County also exhibited mixed signals in its local economic activity. The Reno-Sparks unemployment rate dropped significantly by 0.7 percent to 4.1 percent. August taxable sales recorded its second consecutive monthly decrease, dropping by 5.9 percent month-over-month but increased by 21.2 percent from two years ago. September gaming revenue and visitor volume decreased by 1.6 and 3.7 percent, respectively, from last month partly due to wildfires. September residential permits slightly rose by 0.5 percent from last year.
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.