HARRISBURG — A new report from the Keystone Research Center indicates that while Pennsylvania's economy remains strong, there are growing signs of a potential slowdown. According to the report, economic output and job growth have slowed in the first half of 2025, and inflation indicators are beginning to rise.
The report attributes this shift to several factors, including a rise in tariffs, a decrease in the size of federal investments, and increasing uncertainty among businesses and consumers.
Further data from the report showed a decline in federal jobs within the state, with an estimated 2,600 fewer federal positions in July compared to January—a 2.5% decrease. Additionally, average inflation-adjusted hourly earnings have been on the decline since the fall of 2024, following a brief increase in mid-2024.