Economic Outlook Report Q1 2026

Key Points

  • The economic outlook for the national economy is positive.  GDP, Consumption, and Profits are expected to grow while the unemployment rate is on the decline.
  • The outlook for North Carolina is positive, with growing wages and salaries expected. Gross state product may have a slight downturn in the short term but looks to grow into 2027.
  • The outlook for the Fayetteville Metropolitan Area is improved from the previous report. 
  • Wages in Fayetteville are forecast to grow in 2026.
  • While housing prices in Fayetteville may fall in Q1 2026, the forecast shows this pattern reversing in Q2 with growth into 2027.
  • The Fayetteville unemployment rate is forecast to increase in 2026.

 

Fayetteville MSA Economic Outlook

Graphs of economic factors, the trends are discussed below.

The outlook for the Fayetteville Metropolitan Area is improved.

  • Wages in the metro area look to increase in 2026.
  • Unemployment rate may raise.
  • The recent declining trends in the labor force may reverse with an increase in 2026.
  • Housing prices may enter a trend of slow growth soon.

 

North Carolina Economic Outlook

Graphs of economic factors, the trends are discussed below.

The North Carolina economy continues to perform well

  • Growth in gross state product and total wages and salaries is expected to continue.
  • The labor market will continue to see low unemployment with a possible slight expansion in the labor force putting upward pressure on the unemployment rate.

 

National (USA) Economic Outlook

Graphs of economic factors, the trends are discussed below.

The economic outlook for the U.S. economy remains positive

  • GDP, Consumption, and Profits are expected to grow.
  • The unemployment rate is on the decline.
  • Net investment may decline short term but should quickly recover to previous levels.

 

Full Text of Current and Past Reports