The “third” estimate of U.S. real gross domestic product (GDP) for the first quarter of 2022 shrank by 1.6 percent at an annual rate, revised down by 0.1 percent from the second estimate. The revision reflected a downward adjustment in consumer spending, partly offset by an upward adjustment in private inventory investment. U.S. nonfarm employment experienced a larger-than-expected gain, adding 372,000 jobs in June despite rising recession concerns. The U.S. unemployment rate in June remained unchanged for four consecutive months at 3.6 percent. Retail sales in May, however, declined by 0.3 percent month-over-month. Housing starts in May also plummeted by 14.4 percent from last month in response to rising interest rates. According to the Atlanta Fed’s GDPNow, the real GDP will likely continue to fall in the second quarter. The Federal Reserve, nonetheless, stated that they would continue their efforts to combat inflation with “whatever it takes”.
Nevada’s most recent economic activity posted positive signals. Seasonally adjusted statewide employment added 2,600 jobs in May but remaining 3,000 below pre-pandemic levels. The May unemployment rate also edged down to 4.9 percent. May gaming revenue rebounded, soaring by 15.2 percent month-over-month after a 16.7 percent monthly drop in April, and continuing to top non-seasonally adjusted $1 billion for 15 consecutive months. April taxable sales fell by 6.5 percent from last month but rose by 11.1 percent from last year.
Clark County displayed generally favorable signs in its local economic activity. Seasonally adjusted employment in May added 4,800 jobs. The unemployment rate in May remained unchanged at 5.3 percent. Total Harry Reid passengers experienced a strong pick-up, up by 7.5 percent from last month, nearing pre-pandemic levels. May visitor volume continued its recovery with a robust gain of 1.7 percent month-over-month. May gaming revenue increased by 7.1 percent from last year and April taxable sales also rose by 13.4 percent year-over-year. May residential permits, however, experienced a year-over-year drop of 17.9 percent amid higher mortgage rates.
Washoe County maintained its already strong local economy. The Reno-Sparks seasonally adjusted employment gained 800 jobs in May. The unemployment rate remained unchanged at an all-time low of 2.6 percent. Although taxable sales climbed by 7.4 percent from last year, gasoline sales declined by 3.0 percent over the same period. May gaming revenue also continued to drop by 4.8 percent year-over-year.
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.
