Charlotte EBCS: Fourth Quarter 2026 Report
November 02, 2026 / RERI Research Team
The national economy grew at a faster clip in the third quarter, but a softening labor market, accelerating inflation, and geopolitical headwinds kept consumers, business owners, and policymakers cautious. Real Gross Domestic Product (GDP), an overall measure of economic activity, grew at an annualized rate of 3.4 percent in the third quarter of 2026, accelerating from 2.2 percent in the second quarter. Growth was supported by stronger investment, consumer spending, and government spending, while weaker exports and higher imports partially offset the increase. The labor market remained in a “low-hire, low-fire” environment, with payroll growth averaging only 51,000 jobs per month from July through September, while the unemployment rate ended the quarter at 4.2 percent, unchanged from June. Inflation, as measured by the Consumer Price Index (CPI), rose to 3.7 percent in September 2026, up 0.2 percentage points from June, as energy prices accounted for half of the increase in the index. Core inflation, which excludes volatile food and energy prices, held at 2.6 percent, the same as in June, suggesting these pressures have not yet spread to the broader economy. The Producer Price Index (PPI), which measures the prices paid by firms accelerated this quarter, climbing from 5.5 percent in June to 6.3 percent in September, suggesting possible inflationary pressure in the near future.
