What is in store for our local economy in 2016?

This post by Ben Tedore

Posted in Business Conditions, Economic Development

While several entities provide an outlook for their respective sectors, little information exists as to the outlook for the regional economy as a whole.  What is the big picture of an increase in taxable sales, gaming revenue, home sales, etc.?  How does it compare to historical trends and what does it tell us about the future?

Individual economic indicators such as taxable sales and gaming revenue levels are useful in understanding changes occurring in each industry, but they do not provide a picture of the overall economy and its changes over time.  An economic index, which combines multiple indicators into a single number, can represent either the current state of the economy (coincident index) or future economic changes (leading index).  An economic index simplifies and clarifies economic activity while providing backward and forward trends.

Screen Shot 2016-01-28 at 12.06.59 PMEkay Economic Consultants, Inc., in cooperation with the Center for Regional Studies at the University of Nevada, Reno, is pleased to announce the release of its Leading Economic Index and Coincident Economic Index for the Reno MSA area.  The indices are referred to as RLI and RCI, respectively, and together create the monthly Reno Economic Dynamics (RED) Report.

The RLI and RCI are based on latest local, regional and national data with the purpose of providing a picture of our existing economy and its projected movement over the next six to twelve months.  Latest results of the two indices are summarized below, along with a graph of their historic changes.  For more details about index indicators, values, and methodology, please see the full report, which can be found at

http://ekayconsultants.com/EEC%20Leading%20Index%201-16.pdf.

-Reno MSA Leading Index (RLI) increased between September and October 2015 (0.48%), indicating expected growth in the regional economy over the next 6-12 months.  This is the 41st consecutive increase in the index since May 2012.

-Reno MSA Coincident Index (RCI) increased between October and November 2015 (0.24%), (most recent data), verifying that the current economy continues to expand.

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