Economic Indicators

Consumer Sentiment Falls in March 2026

Consumer sentiment dipped about 2%, reaching its lowest reading of the year to 55.5 in March 2026. Interviews completed prior to the military action in Iran showed an improvement in sentiment from last month, but lower readings seen during the nine days thereafter completely erased those initial gains. Gasoline prices have exerted the most immediate impact felt by consumers, though the magnitude of passthrough to other prices remains highly uncertain. Read the full report. 

Michigan and Detroit Region’s Unemployment Rate Remains Stable 

Michigan and Detroit MSA’s seasonally adjusted unemployment rate ended the year at 5%. Both rates were 0.6 percentage points above the national rate in December 2025.

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 0.7 percent in the fourth quarter of 2025 (October, November, and December), according to the second estimate released today by the U.S. Bureau of Economic Analysis. In the third quarter, 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. These movements were partly offset by decreases in government spending and exports. Imports, which are a subtraction in the calculation of GDP, decreased. 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 Falls in March 2026

Consumer sentiment dipped about 2%, reaching its lowest reading of the year to 55.5 in March 2026. Interviews completed prior to the military action in Iran showed an improvement in sentiment from last month, but lower readings seen during the nine days thereafter completely erased those initial gains. Gasoline prices have exerted the most immediate impact felt by consumers, though the magnitude of passthrough to other prices remains highly uncertain. 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 Second Straight Month  

The U.S. manufacturing sector expanded in February for the second straight month but only the third time in 40 months. “The Manufacturing PMI® registered 52.4 percent in February, a 0.2 percentage point decrease compared to the 52.6 percent recorded in January.

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.