Nevada’s economy beat expectations in 2014 and appears primed for continued growth in the coming year. Improved metrics in productivity, employment and income suggest the state has moved well beyond post-recession recovery and is settling into a pattern of sustained growth. Record visitor volume in the south, the recent announcement that Tesla will build its highly anticipated giga-factory in the north and nation-leading housing price appreciation statewide provide further evidence that the economy’s growth trend should extend well into 2015.

Nevada’s economy expanded at roughly 2.4 percent during 2013 (latest data available). While this pace of expansion was not as high as some observers had hoped, it is accompanied by a 2.4-percent increase in employment through October 2014 – 10th highest rate in the nation – as well the nation’s fastest decline in unemployment. Additionally, between the first and second quarters of 2014, Nevada’s aggregate personal income grew by 1.5 percent. This pace of income growth is nearly double the rate reported in the second quarter of 2013 and was the second-fastest rate reported in the far west states during Q2 2014 (Oregon was number one with a growth rate of 1.7 percent). Also worth noting, nearly every sector of the state’s economy contributed to the expansion, with strong gains in the business and professional services sector.

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Economic Briefing - Dec Screenshot