QUARTERLY ECONOMIC BRIEFING – JUNE 2026

Overview

The U.S. economy entered the second half of 2026 in a period of transition. Economic growth remains positive, unemployment remains relatively low, and inflation has moderated substantially from its 2022 peak. At the same time, households continue to face affordability challenges, businesses are navigating elevated uncertainty, and policymakers are confronting a complex set of domestic and international risks.

Unlike previous economic slowdowns, the current environment is not defined by a single dominant challenge. Instead, multiple forces are influencing economic outcomes simultaneously. Slowing growth, persistent inflationary pressures, geopolitical tensions, elevated interest rates, changing labor market dynamics, and rapid technological change are all shaping the economic landscape.

For Los Angeles County, these national trends are compounded by local challenges, including housing affordability, labor market transitions, energy costs, and heightened exposure to global trade and investment flows. Yet opportunities also remain. Foreign direct investment continues to support hundreds of thousands of jobs throughout California, while the rollout of Opportunity Zone 2.0 presents a new opportunity to attract long-term investment into communities throughout the region.

Key Findings

• The U.S. economy continues to grow, but at a slower pace than during the post-pandemic recovery.

• Inflation has eased considerably, but elevated price levels continue to strain household budgets.

• Consumers remain the primary driver of economic growth, though financial pressures are increasing.

• Labor markets are cooling rather than contracting, with hiring slowing but unemployment remaining relatively low.

• Geopolitical developments have re-emerged as a significant economic risk, particularly through energy markets.

• Los Angeles County’s labor market remains mixed, with strength in some industries offset by weakness in others.

• Foreign-owned enterprises continue to represent a major source of employment and wages throughout California and Los Angeles County.

• Opportunity Zone 2.0 presents a time-sensitive opportunity to align private investment with local economic development priorities.