Index shows few signs of economic recovery in short-term

By Buck Wargo

Wednesday, April 14, 2010 | 3:39 p.m.

UNLV economists aren’t optimistic about a quick recovery of the Southern Nevada economy.

The Center for Business and Economic Research released its Southern Nevada Index of Leading Economic Indicators, which has remained essentially flat.

The index stood at 125.89 in March, up 0.05 percent from February and down 1.05 percent from March 2009. It measures economic activity in January and is a forecast through July 1.

“It is difficult to have much optimism about the near-term economic picture for Southern Nevada because the majority of the series comprising the index is either falling or caught in the doldrums,” said Mary Riddel, the center’s interim director.

Taxable sales continue to be a drag on the index, falling 8 percent in January from January 2009. Gross gaming revenue, convention attendance and the number of passengers traveling through McCarran International Airport continued to be a drag as well, Riddel said.

“Although residential and commercial permitting is up, permitting levels are roughly 15 percent of what they were during the boom years,” Riddel said. “Southern Nevada will not return to the levels of economic activity enjoyed in 2007 until tourism and residential and commercial investment recover.”

Riddel said the Clark County Tourism Index is at its lowest level since 2004. Even though hotel operators offer deeply discounted rooms to attract visitors, the occupancy rate continues to fall, Riddel said. The reduction of flights to Las Vegas by airlines has also hurt the index, she said.