Detroit-Warren-Dearborn 2026-2027 Forecast

Factors Effecting Detroit-Warren-Dearborn:

• Uncertainties associated with production and trade policy volatilities are disrupting manufacturing supply chains and confidence.
• Despite significant regional investment in EVs by the Detroit Three (Ford, GM, and Stellantis), short-term volatilities in EV sales and demand shifts, along with high interest rates are discouraging further investment.
• The labor market remains tight, meaning businesses face challenges filling roles, which can push wages higher.
• The service sectors of Leisure & Hospitality and Healthcare are expected to show sustained growth in employment

Output and Income Projections:

• Consistent with the national and state projections, Gross Domestic Product growth is expected to remain flat in real terms.
• Personal income will mostly keep with inflation through 2027.
• Overall employment projects indicate flat to moderate growth in 2025. This moderate growth is expected to persist over the next two years.
  • Employment in durable goods manufacturing, including the automotive sectors, finished 2024 in red and will see similar declines in 2025. We project that losses will turn flat in 2026 and 2027, but still favor slight declines.
  • Information sectors will remain in a negative trajectory through 2027 while financial sectors will support tepid, but positive growth.
  • Health and Education services will support large gains over the next two years
  • With consumers spending more on meals away from home and entertainment, expect further gains in the Leisure and Hospitality industries.

Updated October 30, 2025