Economic Indicators

Consumer Sentiment Drops to Record Low

Consumer sentiment sank about 11% this month, extending a decline that began with the start of the Iran conflict, and is currently about 9% below a year ago. Demographic groups across age, income, and political party all posted setbacks in sentiment, as did every component of the index, reflecting the widespread nature of this month’s fall. One-year expected business conditions plunged about 20% and is now 6% below last April. Assessments of personal finances declined about 11%, with consumers expressing a substantial increase in concerns over high prices and weaker asset values. Buying conditions for durables and vehicles worsened, again on the basis of high prices. Open ended comments show that many consumers blame the Iran conflict for unfavorable changes to the economy. Read the full report. 

Michigan and Detroit Region’s Unemployment Rate Remains Stable 

Michigan and Detroit MSA’s seasonally adjusted unemployment rate started the year at 5%. Both rates were 0.6 percentage points above the national rate in January 2026.

Employment Levels Slightly Up in December 2025 

Nonfarm employment in the Detroit Region reached 2,073,500 in December 2025. In 2025, employment in Detroit Region increases by 0.5% compared to the previous year.

Job Postings Rebound in February 2026 

In February 2026, total job postings in the Region reached over 106,500—marking a 9% increase more the previous month. Registered nurses remains as the most in-demand occupation in the Detroit Region.

U.S. Economy Grew in Q4 2025 but Fell Short of Expectations Due to Weaker Consumer Spending and the Government Shutdown

Real gross domestic product (GDP) increased at an annual rate of 0.5 percent in the fourth quarter of 2025 (October, November, and December), according to the third estimate released today by the U.S. Bureau of Economic Analysis. In the third quarter of 2025, real GDP increased 4.4 percent. The contributors to the increase in real GDP in the fourth quarter were increases in consumer spending and investment. 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 Held Steady at 2.4% in February 2026

In February, the Consumer Price Index for All Urban Consumers rose 0.3 percent, seasonally adjusted, and rose 2.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.2 percent in February (SA); up 2.5 percent over the year (NSA). Read the full report.

Consumer Sentiment Drops to Record Low

Consumer sentiment sank about 11% this month, extending a decline that began with the start of the Iran conflict, and is currently about 9% below a year ago. Demographic groups across age, income, and political party all posted setbacks in sentiment, as did every component of the index, reflecting the widespread nature of this month’s fall. One-year expected business conditions plunged about 20% and is now 6% below last April. Assessments of personal finances declined about 11%, with consumers expressing a substantial increase in concerns over high prices and weaker asset values. Buying conditions for durables and vehicles worsened, again on the basis of high prices. Open ended comments show that many consumers blame the Iran conflict for unfavorable changes to the economy. Read the full report. 

Michigan’s New Business Applications Increased 12.7% in 2025 

In 2025, new business applications rose by 12.7% compared to 2024, reaching a total of 152,800. This represents an increase of more than 17,000 applications from the previous year.

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

The U.S. manufacturing sector expanded in March for the third straight month following a 10-month period of contraction, registering 52.7 percent, a 0.3-percentage point increase compared to February’s reading of 52.4 percent.

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.