RENO MSA ECONOMIC OUTLOOK – JANUARY 2017
Published March 2017
To answer the demand for economic trend insight and analysis in Northern Nevada, this report summarizes the coincident and
leading indexes for the Reno MSA.
Leading Economic Index
Coincident Economic Index
January 2017
Provides an economic outlook for the region by signaling future movements in
the Reno MSA economy over a six to twelve month period.
January 2017
Provides historical and current trends
for the Reno MSA economy.
0.53%
0.27%
Taxable # of SF
Initial
Taxable Gaming Homes Airport Airport Gasoline Claims for S&P 500
Sold Unemploy. Index
% Change Sales Revenue Sold Passengers Cargo
Month to
0.53%
Month
-0.68%
-1.04%
0.68%
0.52%
-0.08%
-0.07%
3.40%
Interest
Rate
Spread
-8.72%
M2
Money
Supply
-0.44%
7.24%
Taxable # of SF
Initial
Interest
M2
Taxable Gaming Homes Airport Airport Gasoline Claims for S&P 500
Rate
Money
% Change Sales Revenue Sold Passengers Cargo
Sold Unemploy. Index
Spread
Supply
Year to
9.58% 2.58%
2.31% 6.66%
12.22% 2.55% -13.66%
14.59% 1.71%
4.22%
Year
Eugenia Larmore
(775) 232-7203
[email protected]
Nonfarm
Household
% Change Employment Employment
Month to
Month
0.33%
0.21%
3.65%
Nonfarm
Household
% Change Employment Employment
Year to
4.74%
2.63%
Year
Brian Bonnenfant
(775) 784-1771
[email protected]
Reno MSA Economic Outlook – January 2017
2
The Reno MSA leading economic index uses a robust econometric approach to determine variables to include in the index and
estimate weights for the selected series. The Reno MSA coincident index is created using the composite methodology introduced by
the Department of Commerce and made popular by The Conference Board. All data series are monthly, many are seasonally
adjusted using the moving average method, and all series reported in dollar terms are adjusted for inflation. All indexes are based
on data starting January 1995, with 1995=100. The following variables are included in each index:
Leading Index










NV Claims for Unemployment
WC Gaming Revenue
WC Single-Family Home Sales
S&P 500 Index (US)
WC Taxable Sales
Interest Rate Spread
MSA Gasoline Sales
Money Supply (US)
RTIA Passengers
RTIA Cargo
Coincident Index
 MSA Nonfarm Employment (CES)
 MSA Household Employment (LAUS)
* MSA-Reno Metropolitan Statistical Area * NV-Nevada * WC-Washoe County * RTIA-Reno Tahoe International Airport
Note that initial claims for unemployment and interest rate spread series are inversely related to economic growth. An increase in
the number of new claims for unemployment would indicate a decline in the economy. Similarly, increases in interest rates slow
economic growth as access to capital becomes more expensive.
Reno MSA Economic Outlook – January 2017
3
Reno MSA Leading Index
Reno MSA Leading Index increased between December
2016 and January 2017, indicating expected growth in
the regional economy over the next 6-12 months. This is
the third month of index growth following a slight
decrease in the index in October.1
The RLI shows a 0.53% increase between December 2016
and January 2017. The index increased by 7.24% over
the same period last year (January 2016 to 2017). A
number of local series (taxable gaming revenue, # of
single-family homes sold, and gasoline sales) declined
between December and January, when seasonally
Reno MSA Leading Economic Index
Latest Period- Prev.PeriodChange
Prev. YearChange
Series
January 2017 December 2016 Prev. Period January 2016 Prev. Year
Taxable Sales (Washoe Co, SA, CPI)
419,985,590
417,774,118
0.53%
383,259,527
9.58%
Taxable Gaming Revenue (Washoe Co., SA, CPI)
42,510,263
42,801,879
-0.68%
41,442,854
2.58%
# of Single Family Homes Sold (Washoe Co., SA)
719
727
-1.04%
703
2.31%
Airport Passengers (RTIA, SA)
306,293
304,236
0.68%
287,163
6.66%
Airport Cargo Lbs. Shipped (RTIA, SA)
13,101,486
13,033,910
0.52%
11,675,213 12.22%
Gallons of Gasoline Sold (Washoe & Storey Co., SA)
14,676,695
14,689,141
-0.08%
14,311,213
2.55%
Initial Claims for Unemployment (Nevada, SA)
2,645
2,646
-0.07%
3,063 -13.66%
S&P 500 Index (US, CPI)
1,430
1,383
3.40%
1,248 14.59%
Interest Rate Spread (US)
1.78
1.95
-8.72%
1.75
1.71%
M2 Money Supply (US, CPI)
8,326
8,362
-0.44%
7,989
4.22%
Leading Index Result
130.10
129.41
0.53%
121.32 7.24%
Source: US Department of Labor, Nevada Gaming Control Board, Washoe County Assessor/Center for Regional Studies (UNR), Federal Reserve Bank of St.
Louis, Nevada Department of Taxation, Nevada Department of Motor Vehicles, Reno-Tahoe International Airport (RTIA).
SA-Series results are seasonally adjusted.
CPI-Series results are adjusted for inflation to 1995.
1
adjusted. The index shows an increase
primarily due to changes national factors
(S&P 500 and Interest rate spread).
Other than a slight (0.06%) decline in the
index in October 2016, this is a
continuation of the period of growth
enjoyed by the region in the recent years
and provides a positive outlook for
future growth in the region over the next
six to twelve months.
The Reno MSA Leading Economic Index (RLI) predicts future changes in the region’s economy by “leading” current economic activity, represented by the coincident index. The
Leading Index is based on ten local, regional, and national data series aggregated using a combination of composite and econometric techniques. Due to lags in data availability,
taxable sales and gasoline gallons sold data are projected for the month ahead and updated when actual data becomes available.
Reno MSA Economic Outlook – January 2017
4
Reno MSA Coincident Index
Reno MSA Coincident Index increased between
December 2016 and January 2017, as the regional
economy continues to expand.
The Reno MSA Coincident Index, which reflects current
economic conditions in the region, is based on two
indicators: Washoe and Storey County employment
from the Current Employment Statistics (CES) series and
Local Area Unemployment Statistics (LAUS) series. Both
series are administered by the Bureau of Labor Statistics
(BLS).
The index shows a 0.27% increase between December
2016 and January 2017, the latest data available for
both series. The index increased by 3.65% between
January 2016 and 2017. The Reno MSA coincident
index has increased for 66 straight months since August
2011 as employment in the region continues to grow.
Reno MSA Coincident Economic Index
Series
Reno MSA Employment (CES, SA)
Reno MSA Employment (LAUS, SA)
Coincident Index Result
Latest Period- Prev.PeriodChange
Prev. YearChange
January 2017 December 2016 Prev. Period January 2016 Prev. Year
221,333
220,608
0.33%
211,317
4.74%
221,982
221,517
0.21%
216,285
2.63%
135.94
135.58
0.27%
131.16
3.65%
Source: Current Employment Statistics (CES) and Local Area Unemployment Statistics (LAUS), Bureau of Labor Statistics.
SA-Series results are seasonally adjusted.