The “second” estimate of U.S. real gross domestic product (GDP) for the first quarter of 2022 shrank by 1.5 percent at an annual rate, revised down by 0.1 percent from the advance estimate. The revision reflected lower-than-expected private inventory and residential investments, which were partly offset by an upward revision in consumer spending. U.S. nonfarm employment continued its robust gain, albeit at a slower pace, adding 390,000 jobs in May. The U.S. unemployment rate in May, however, remained unchanged at 3.6 percent with a slightly higher labor force participation rate. Retail sales in April climbed solidly by 0.9 percent month-over-month. Auto and truck sales in May declined by 12.5 and 24.9 percent, respectively, from last month and last year largely due to tight inventories and high prices. The Federal Reserve will probably continue to increase the federal funds rates by 50 basis point at both June and July meetings.
Nevada’s most recent economic activity posted positive signals. Seasonally adjusted statewide employment added 5,200 jobs in April, remaining 4,100 below pre-pandemic levels. The April unemployment rate, however, remained unchanged at 5.0 percent. April gaming revenue dropped by 16.7 percent month-over-month after hitting its second highest level of all time, but continuing to top not seasonally adjusted $1 billion for 14 consecutive months. March taxable sales surged by 26.7 and 14.3 percent, respectively, from last month and last year.
Clark County displayed generally favorable signs in its local economic activity. Seasonally adjusted employment in April added 2,800 jobs. The unemployment rate in April edged down to 5.3 percent. Although April visitor volume continued its robust gain of 1.1 percent month-over-month, total Harry Reid Airport passengers did not budge much from last month, decreasing by 0.4 percent. April gaming revenue plummeted by 18.5 percent month-over-month after hitting a record high in March but jumped 11.0 percent from last year. March taxable sales soared 18.0 percent year-over-year. April residential permits also experienced a strong year-over-year gain of 17.5 percent despite higher mortgage rates.
Washoe County exhibited mixed signals in its local economic activity. The Reno-Sparks seasonally adjusted employment continued a robust gain of 1,200 jobs in April. The unemployment rate remained unchanged at an all-time low of 2.6 percent. March taxable sales, however, only gained 1.3 percent year-over-year. April gaming revenue dropped by 2.4 percent from last year. April residential permits, nevertheless, surged by 92.3 percent year-over-year.
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.