latest news in economy
New York City Economic Recovery Stalls as Business Closures Reach Post-Pandemic High
New York, Friday, 16 January 2026.
A staggering 8,400 businesses shuttered in one quarter, erasing New York City’s post-2022 start-up gains and signaling a critical contraction in the metropolitan economic landscape.
US Power Generation Hits Record Growth Amidst Rising Data Center Demand
Washington, Thursday, 15 January 2026.
United States utility electricity generation climbed 3% in 2025, marking the beginning of the strongest four-year demand growth period in a quarter-century. Driven largely by the explosive energy needs of data centers and artificial intelligence, this surge has reshaped the grid’s composition, triggering a 13% rebound in coal consumption and a 2.4% rise in emissions. As the EIA forecasts continued expansion through 2027, the sector faces a pivotal moment where soaring technological demand collides with shifting federal policies and significant infrastructure constraints.
Manufacturing Sector Sheds Jobs Despite Tariffs Intended to Spark Growth
Washington D.C., Thursday, 15 January 2026.
While tariffs were predicted to revitalize industry, data reveals the manufacturing sector actually shed 72,000 jobs since April, defying the administration’s “Liberation Day” growth forecasts.
UK Economy Beats Expectations with November Rebound Driven by Manufacturing Recovery
London, Thursday, 15 January 2026.
A dramatic 25.5% spike in car manufacturing, following Jaguar Land Rover’s recovery from a cyber-attack, propelled the UK economy to unexpectedly expand by 0.3% in November 2025, defying initial market forecasts.
New Data Reveals a Strategic Shift Toward Measurable Returns in 2026 AI Budgets
New York, Thursday, 15 January 2026.
Embracing ‘AI realism,’ companies are increasing budget allocations to 5% in 2026, shifting focus from experimental hype to infrastructure, governance, and verifiable return on investment.
Goldman Sachs Warns: AI Productivity Boom May Sever Link Between Growth and Jobs
New York, Thursday, 15 January 2026.
Goldman Sachs’ Chief Economist Jan Hatzius identifies a critical shift in the US economy as we enter 2026: the traditional correlation between robust GDP growth and a healthy labor market is fracturing. While AI adoption is projected to drive productivity gains of up to 25%, this efficiency is actively decoupling economic expansion from job creation. Unemployment has already risen to 4.4% despite solid output, with youth unemployment spiking to 8.3%. This divergence suggests AI is accelerating the economy’s “speed limit” while simultaneously dampening labor demand, creating a paradox where the economy booms while workers struggle. As productivity trends accelerate, policymakers face the unprecedented challenge of navigating a “jobless growth” phase that could fundamentally alter the social contract.