Though conditions are improving a robust recovery eludes the Silver State, according to the latest Quarterly Economic & Business Activity Report from the Nevada Secretary of State’s office.
The report reveals leading indicators are mixed with total new business entity filings and domestic filings relatively flat compared to the prior quarter and up 2.0% and 2.5% from the same quarter of the prior year. Foreign (non-Nevada) new filings fell by more than 5% from the 2nd quarter of 2012.
Total new entity filings continued the seasonal trend they have followed since bottoming out during the recession, with the 1st and 2nd quarters reporting higher numbers than the final two quarters. Filings for the first quarter this year were below the levels of 2011 and 2012. While the 2nd quarter filing number this year was higher than that of 2012 it was below the level of 2011. New entity filings in 5 of the last 7 quarters have been below the number of the same quarter of the prior year.
The Silver State has seen ten consecutive quarters of higher employment compared to the same quarter of the prior year, however.
According to Jeremy Aguero of Applied Analysis, which prepared the report,
Employment in Nevada continued to report annual growth in the second quarter, with 19,600 jobs added in the 12 months ending June 2013…After witnessing a 6.2-percent year-over-year decline in the first quarter of 2013, new entity filings increased 2.0 percent in the second quarter, suggesting gains in employment may be partially tied to new business creation. Although more people are working overall, employee workloads appear to be taking a hit. Private sector average weekly hours worked per week fell for the sixth consecutive month in June of 2013 to 33.8. The latest trends suggest that while broader economic conditions appear to be improving, some headwinds are creating challenges. More specifically, we need to be cognizant of the impacts of rising interest rates, Federal monetary policy going forward and the overall productivity of Nevada workers.
This report echoes much of the recent economic news from Nevada – conditions are improving, albeit slowly.