Regional Economic Indicators: May 2026 Report
May 04, 2026 / RERI Research Team
The national economy entered 2026 on mixed footing, with steady economic growth offset 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 2.0 percent in the first quarter of 2026, characterized by increases in consumer spending, investment and government spending. The national unemployment rate inched up 0.1 percentage points from March 2025 to 4.3 percent in March 2026, even as total unemployment rose 1.5 percent and employment slipped 0.4 percent, signaling a cool labor market marked with slower hiring and reduced worker turnover. Inflation, as measured by the Consumer Price Index, rose by 0.9 percentage points to 3.3 percent in March, likely reflecting early effects of geopolitical tensions, though core inflation has not yet absorbed these pressures. Together, this led the Federal Open Market Committee (FOMC) to maintain its wait-and-see approach, holding the federal funds rate at 3.50 to 3.75 percent for the third consecutive meeting in April 2026.
