GYF’s Business Valuation & Litigation Support Services Group continues to monitor economic conditions. The U.S. economic outlook entering 2026 reflects a moderating but resilient economy facing heightened uncertainty from geopolitical conflict, inflationary pressures, and evolving trade policy. While real GDP growth remains positive and the Federal Reserve projects continued expansion through 2028, labor market conditions have softened as unemployment has gradually increased and job growth has slowed.
Inflation remains above the Federal Reserve’s long-term target, driven in part by rising energy prices, supply chain disruptions, and tariffs associated with the ongoing conflict involving Iran, prompting the Federal Reserve to maintain a cautious monetary policy stance. Consumer sentiment has weakened considerably as households face higher costs and increased economic uncertainty, while manufacturers and businesses continue to navigate tightening supply chains and elevated operating costs.
Overall, the economy is expected to continue growing at a moderate pace, though risks related to inflation, global conflict, trade policy, and weakening consumer confidence continue to cloud the near-term outlook. For more details about Q1 of 2026, download our Economic Recap.
