Economic Indicators

Inflation Increased to 4.2%, Driven Largely By a Surge in Energy and Gasoline Prices

In May, the Consumer Price Index for All Urban Consumers rose 0.5 percent, seasonally adjusted, and rose 4.2 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.2 percent in May (SA); up 2.9 percent over the year (NSA). Read the full report. 

Unemployment Rates Increased in May 2026

Detroit MSA’s and Michigan’s seasonally adjusted unemployment rate increased in May 2026.  The national rate remained unchanged between April and May at 4.3%. The Region’s unemployment rate was 1.0 percentage points higher than the U.S. rate.

Employment Levels Down Year Over Year in May 2026

Nonfarm employment in the Detroit Region totaled 2,048,100 in May 2026, a 0.7% 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) increase at an annual rate of 2.1 percent in the first quarter of 2026 (January, February, and March), according to the third 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 increases in investment, exports, government spending, and consumer 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 4.2%, Driven Largely By a Surge in Energy and Gasoline Prices

In May, the Consumer Price Index for All Urban Consumers rose 0.5 percent, seasonally adjusted, and rose 4.2 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.2 percent in May (SA); up 2.9 percent over the year (NSA). Read the full report. 

Consumer Sentiment Up in June 2026

This month, consumer sentiment ticked up about four index points, or 9%, with consumers experiencing some relief due to the early-month easing in gasoline prices. This measured improvement in sentiment was widespread, seen across age, education, and political party. Lower-income consumers exhibited a particularly strong sentiment increase, consistent with the fact that gasoline comprises a larger share of their budgets. 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.