LAS VEGAS (KLAS) — Companies have misplaced confidence within the financial system, in accordance with a UNLV report that can be launched publicly subsequent week. A draft of the report was obtained by 8 Information Now Politics host John Langeler.
The dramatic decline in confidence occurred shortly, plunging since a latest survey final quarter, and has reached depths that have not been seen in additional than a decade, in accordance with Andrew Woods, director of UNLV’s Middle for Enterprise and Financial Analysis.
Andrew Woods, director of UNLV’s Middle for Enterprise and Financial Analysis (CBER).
“We found (businesses) were the most pessimistic they’ve ever been, except for the Great Recession,” Woods mentioned. That recession adopted the collapse of the housing market in 2008.
A 3rd-quarter survey produced a Enterprise Confidence Index of 75.2%. That has fallen to 50.5% within the fourth quarter, the brand new report reveals. It is the second-lowest rating ever recorded by the survey.
“A lot of this has been driven by the national narrative. The uncertainty factor continues to go up,” Woods mentioned. The survey additionally discovered ongoing weaknesses in hiring exercise pushed by financial uncertainty and decrease gross sales.
“They’ve been able to manage up until this point. But the costs continue to compound and the uncertainty doesn’t give them the confidence to invest,” Woods mentioned.
See the total interview on Politics Now, Saturday at 11:30 p.m. on Channel 8.
Tourism reviews this week confirmed an 8.8% drop in Las Vegas guests in comparison with final September, and resort occupancy dropped to a median 78.7% from 83.9% final 12 months. Conference attendance went down 18.7%. Casinos on the Strip posted a winnings decline of greater than 5% in comparison with final 12 months, and Clark County general was down 6%.
The Las Vegas financial system is closely depending on tourism.
And regardless of numbers which can be down year-over-year, company leaders operating many of the big-name resorts on the Strip are optimistic about a greater finish to 2025 and a powerful 2026. They describe Las Vegas as “fundamentally solid.”
“We’re not in a recession,” Woods mentioned. “We’re not forecasting a recession. But consumers are a lot more discerning with their budgets.”
Whereas tens of millions of individuals are nonetheless coming to the valley’s resorts, numbers are softening. Woods factors out that whereas Las Vegas numbers have slipped, visitation continues to be comparatively sturdy in different vacationer locations like Orlando or Honolulu.
“I think it’s about value,” Woods mentioned. “We need to continue to give the consumer confidence that when they come to Las Vegas and plan that big vacation, they’re getting the value.”
Reliance on tourism has been seen as a vulnerability within the Las Vegas financial system. On high of that, greater than half of the state’s on line casino win comes from the Strip. However Woods has seen a optimistic development that reveals the financial system is diversifying.
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Woods mentioned Nevada is the third fastest-growing state for brand spanking new companies with workers.
“They’re in health care and social assistance, professional and business services,” Woods mentioned. “Nevada is a strong place for entrepreneurship, particularly coming out of the pandemic.”
Woods suggests whereas tech jobs will not be in demand in California, they’re in Las Vegas. It is a key supply of this new enterprise development.
“We import a lot of our skilled labor here. They are starting a business with skills that are in demand,” he mentioned.
