Strong economic growth continues in Nevada

Sunday, Dec. 5, 1999 | 9:53 a.m.

Economic growth continued strong in Nevada in the third quarter with total payroll employment growth of nearly 8 percent for the period, the Federal Reserve Bank of San Francisco reported.

The bank outlined economic growth for its 12th district, which includes Nevada, in the November edition of its newsletter, Western Economic Developments.

Nevada's economic strength showed in total payroll employment, which grew at nearly double the pace of the year's first half, the report said.

Total personal income in the state grew 9 percent during the first half of 1999 compared with the same period a year ago, outpacing the national average gain of 5.5 percent, the report said.

Employment in transportation services has grown the fastest in Nevada, increasing 15 percent in the third quarter and 10 percent for all of 1999.

Expansion in air transportation services, prompted by a need to serve growing passenger counts, has fueled the employment growth.

Keith Schwer, head of the Center for Business and Economic Research at the University of Nevada, Las Vegas, attributes the healthy Nevada economy to a spate of mega-resort openings.

Since October 1998, the Las Vegas Strip has added for major hotel-casinos: Bellagio, Mandalay Bay, The Venetian and Paris.

Nevada's hot growth was uncommon for the West, the bank's report said.

Third-quarter expansion in California has been slower this year than last year. And economic competition from California and manufacturing cutbacks hurt expansion in Utah, Arizona and Oregon, the report said.

The economic future for Nevada and the rest of the nation looks bright, Schwer said.

"There's nothing in current economic data to suggest the economy is going downward," he said. "Most (analysts) believe the U.S. economy will continue to expand into the next two years."