Economic Indicators

Inflation Slowed to 3.4% in July 2026 as Gas Prices Fell

The consumer price index increased 3.4% in the 12 months ending in July, down from the 3.5% in June, which marked the first decline in annual inflation rate since January 2026. Core inflation, which excludes food and energy prices, also edged lower, dropping from 2.6% in June to 2.5% in July. One of the biggest reasons for the cooler July CPI readings was the continued slowing of price hikes in housing. The shelter index, which accounts for about one-third of the overall CPI basket, rose just 0.1% in July as prices fell at hotels, motels and other away-from-home accommodations. Food inflation slowed as well: Grocery prices fell by 0.1% in July and are running below overall annual inflation at 2.7%. Read the full report.

Detroit Metro’s Unemployment Rates Increased in June 2026

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) seasonally adjusted unemployment rate rose by one-tenth of a percentage point to 5.4% during June. Employment increased by 4,000 over the month, while unemployment edged up by 1,000, resulting in a labor force gain of 5,000 in June. The Detroit MSA unemployment rate rose by six-tenths of a percentage point over the year. The Detroit region’s labor force increased by 35,000 since June 2025.

Detroit MSA Job Growth Rebounds in First Half of 2026, But Remains Slightly Below Last Year

In June 2026, total nonfarm employment in the Detroit MSA reached 2.06 million jobs, up 16,600 jobs from May. Employment was 5,000 jobs lower than in June 2025 (-0.2%) and remained just below the recent high of 2.07 million jobs recorded in June 2025.

Despite the July Slowdown, 2026 Hiring Demand Remains Stronger than 2025 Overall

While July 2026 unique job postings were down slightly from a year ago (-1.4%), the region recorded more than 738,000 unique postings during the first seven months of 2026, an 8.6% increase over the same period in 2025. Hiring activity has remained above 100,000 postings in nearly every month this year, signaling continued demand for workers across industries.

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 Slowed to 3.4% in July 2026 as Gas Prices Fell

The consumer price index increased 3.4% in the 12 months ending in July, down from the 3.5% in June, which marked the first decline in annual inflation rate since January 2026. Core inflation, which excludes food and energy prices, also edged lower, dropping from 2.6% in June to 2.5% in July. One of the biggest reasons for the cooler July CPI readings was the continued slowing of price hikes in housing. The shelter index, which accounts for about one-third of the overall CPI basket, rose just 0.1% in July as prices fell at hotels, motels and other away-from-home accommodations. Food inflation slowed as well: Grocery prices fell by 0.1% in July and are running below overall annual inflation at 2.7%. Read the full report.

Consumer Sentiment Falls to 51.0 in August 2026

Consumer sentiment fell about 8% this August, ending two consecutive months of improvement. While views of personal finances saw only minor declines, expected business conditions sank 11% for the short run and 17% for the long run. Decreases in sentiment were seen across the political spectrum, with Republicans exhibiting the strongest month-to-month decline in August. Sentiment among Republicans is now 19% below readings just prior to the Iran conflict and the lowest since the 2024 election. Although the early-month weakening in sentiment was pervasive across various demographic groups, notably large reductions were seen among older consumers, lower-income consumers, and those without a college degree. These groups are all particularly vulnerable to any erosion of purchasing power stemming from inflation. Across all consumers, only 8% expect their income growth to exceed inflation in the year ahead, down from 18% in December 2024, a reflection of the belief that high prices will continue to be burdensome. Read more.

Michigan’s New Business Applications Remained Strong in Q2 2026

New business applications totaled 39,966 in Q2 2026, up 11.5% from the same quarter in 2025, signaling continued entrepreneurial activity.

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

The U.S. manufacturing sector expanded in July for the seventh straight month following a 10-month period of contraction, registering 55.6%, a increase of 2.3 percentage point compared to June. Four of the six largest manufacturing industries expanded in July.

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.