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. 

Unemployment Rates Remained in April 2026

Detroit MSA’s and Michigan’s seasonally adjusted unemployment rate was unchanged during April. The national rate remained unchanged between March and April at 4.3%. The Region’s unemployment rate was 0.9 percentage points higher than the U.S. rate.

Employment Levels Down Year Over Year in April 2026

Nonfarm employment in the Detroit Region totaled 2,023,500 in April 2026, a 0.9% decline from the previous year.

Job Postings Up in May 2026 

In May 2026, total job postings in the Region reached 110,394, a 3% increase 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 1.6 percent in the first quarter of 2026 (January, February, and March), according to the second 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 exports, investment, consumer spending, and government spending. Imports, which are a subtraction in the calculation of GDP, 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 fell for the third straight month as supply disruptions in the Strait of Hormuz continue to boost gasoline prices. Sentiment is now just below the previous historical trough seen in June 2022. The cost of living continues to be a first-order concern, with 57% of consumers spontaneously mentioning that high prices were eroding their personal finances, up from 50% last month. Lower-income consumers and those without college degrees posted particularly strong sentiment declines; these groups are more sensitive to increases in the cost of gas and other essentials. 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 Fifth Straight Month  

The U.S. manufacturing sector expanded in May for the fifth straight month following a 10-month period of contraction, registering 54%, an increase of 1.3 percentage points as compared to April. This is the highest PMI® reading since it registered 55.9% in May 2022.

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.