UNLV's CBER Releases Southern Nevada Business Confidence Survey Results for Q3 2021
Every quarter UNLV's Center for Business and Economic Research (CBER) conducts a survey in Southern Nevada of local businesses to gauge their sentiment on how the economy is doing.
Below are highlights of the survey for the 3rd quarter. The complete report can be downloaded from the center's website.
Southern Nevada business leaders expressed the highest confidence ever recorded for both Nevada and U.S. economic conditions as the economy snaps back faster and stronger than expected. CBER’s index for Nevada beat its prior peak in the 1st quarter of 2015.
Four of the five individual components of the Southern Nevada Business Confidence Index for the 3rd Quarter of 2021 set record highs going back to 2008.
EXPECTATIONS FOR CAPITAL EXPENDITURE
This was the one measure that did not set a record high, though it remains at an impressive level of 135.2. In a strong sign of optimism, 44.4 percent of respondents forecasted increased capital expenditure in their industry. Recent shortages and supply chain constraints may slightly constrain this measure.
EXPECTATIONS FOR HOME PRICES
Local business executives predict that the upward trend of local housing prices will continue for the third quarter with a value of 164.8. Nevada continues to show strong month-over-month housing-price growth, though below national indexes for year-over year-housing-price growth.
EXPECTATIONS FOR CONSTRUCTION ACTIVITY
Local business leaders express a highly positive outlook on construction activity with an index value of 167.3 and with 72.7 percent of the respondents expecting more construction activity in the 3rd quarter. This may reflect the rapid recovery of the economy fueled by high vaccination rates, federal relief money, increased business confidence, and possible further spending on infrastructure out of Washington, D.C.
While business confidence was the number one concern mentioned by respondents (32.0 percent), finding qualified employees soared to the number two spot, rising from 12.8 percent last quarter to 22.0 percent. Inflation and (material) supply issues were also mentioned.
EXPECTATIONS FOR FULL ECONOMIC RECOVERY
Optimism in the speed of the economic recovery has increased with 12.0 percent of respondents expecting a full recovery in 2021 (higher than the 3.5 percent from last quarter) and an increased majority of local business leaders (56.0 percent) anticipate that a full recovery will happen in 2022.
About Center for Business and Economic Research (CBER)
Established in 1975, CBER conducts applied research vital to business and government. CBER cooperates with partners to extend the benefits of the UNLV's research community throughout the state of Nevada and the country.