2026 Economic and Business Outlook
2026 Economic and Business Outlook CEO Perspective As 2025 comes to a close and we look ahead to 2026, the economic picture presents a mix of caution and opportunity. Labor Markets and Growth One of the more notable developments has been the slowdown in job growth. Hiring momentum has clearly softened, with recent data—released later than usual due to government shutdowns—showing job losses in October and November. Manufacturing employment continues to trend downward, and temporary employment, a key leading indicator, has declined in 41 of the past 44 months. While headline employment figures may overstate actual job creation, according to warnings from the Federal Reserve, the broader trend suggests reduced spending and a more cautious business environment. Much will depend on how financial markets perform as we move through 2026. That said, small business optimism has been rising, even as concerns about inflation persist. Core inflation remains above the Fed’s 2% ta...