Economic Indicators

Inflation Increased to 3.8%, Highest Rate in Three Years 

In April, the Consumer Price Index for All Urban Consumers rose 0.6% on a seasonally adjusted basis and 3.8% over the past 12 months on a non‑seasonally‑adjusted basis. The index for all items excluding food and energy increased 0.4% in April (SA) and 2.8% over the year (NSA). Inflation accelerated in April compared with a year earlier as higher energy costs, driven by conflict in the Middle East, replaced tariffs as the main source of upward price pressure. For energy, that put the 12-month gain at 17.9%, while food was up 3.2%. The gasoline index increased 28.4% annually. Read the full report. 

Detroit Region’s Unemployment Increases in March 2026

Detroit MSA’s seasonally adjusted unemployment rate reached 5.2% in March 2026 and remained 0.9 percentage points above the national rate.

Employment Levels in March Decline Compared With the Previous Year

Nonfarm employment in the Detroit Region reached 2,013,600 in March 2026, overall employment declined 0.4% compared with the previous year.

Job Postings Deceased in April 2026

In April 2026, total job postings in the Region reached 109,172, a 5% decline from the previous month. Registered nurses remained the most in-demand occupation in the Detroit Region.

U.S. Economy Grows in Q1 2026

Real gross domestic product (GDP) increased at an annual rate of 2.0 percent in the first quarter of 2026 (January, February, and March), according to the advance estimate released today by the U.S. Bureau of Economic Analysis. In the fourth quarter of 2025, real GDP increased 0.5 percent. The contributors to the increase in real GDP in the first quarter were investment, exports, consumer spending, and government spending. Imports, which are a subtraction in the calculation of GDP, also increased. Read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Inflation Increased to 3.8%, Highest Rate in Three Years 

In April, the Consumer Price Index for All Urban Consumers rose 0.6% on a seasonally adjusted basis and 3.8% over the past 12 months on a non‑seasonally‑adjusted basis. The index for all items excluding food and energy increased 0.4% in April (SA) and 2.8% over the year (NSA). Inflation accelerated in April compared with a year earlier as higher energy costs, driven by conflict in the Middle East, replaced tariffs as the main source of upward price pressure. For energy, that put the 12-month gain at 17.9%, while food was up 3.2%. The gasoline index increased 28.4% annually. Read the full report. 

Consumer Sentiment Declines to a New Record Low in May 2026

Consumer sentiment declined to 48.2 in May 2026, down 1.6 points from April and reaching a new record low. While the expectations index inched up, current conditions fell back about 9%, owing to a surge in concerns about high prices both for personal finances as well as buying conditions for major purchases. Real income expectations continued a decline that began in March. About one-third of consumers spontaneously mentioned gasoline prices and about 30% mentioned tariffs. Taken together, consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump. Middle East developments are unlikely to meaningfully boost sentiment until supply disruptions have been fully resolved and energy prices fall. Read the full report. 

Michigan’s New Business Applications Remained Strong in Q1 2026

New business applications in Q1 2026 rose 25% compared with the same quarter in 2025, totaling 40,542 and indicating continued strong entrepreneurial activity.

Economic Activity in the Manufacturing Sector Expands for the Fourth Straight Month  

The U.S. manufacturing sector expanded in April for the fourth straight month following a 10-month period of contraction, registering 52.7 percent, the same reading as March. Responded noted that geopolitical uncertainty and rising oil prices continue to weigh on demand.

ISM® states a reading above 50% shows that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. The index is based on a monthly survey of supply chain managers and measures general direction of economic trends in manufacturing and other sectors.