Regional Economic Indicators: August 2026 Report
August 03, 2026 / RERI Research Team
In the second quarter of 2026, the national economy saw slower economic growth with by a softening labor market, above-target inflation, and geopolitical headwinds keeping consumers, business owners and policymakers cautious. Real Gross Domestic Product (GDP), an overall measure of economic activity, grew at an annualized rate of 1.5 percent in the second quarter of 2026, slowing from the first quarter’s pace, with consumer spending accelerating even as investment growth cooled and government spending declined. The national unemployment rate was stable, ending the quarter at 4.2 percent in June. The labor market is still in a “low-hire, low-fire” environment, and young adult workers are feeling the effects of fewer new employment opportunities. Inflation, as measured by the Consumer Price Index, rose to a 3-year high of 4.2 percent in May due to an energy supply shock from conflict in the Middle East. Fortunately, the energy-driven price surge has not spilled over into the rest of the economy, with Core CPI falling to 2.6 percent in June.