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BETHLEHEM, Pa.- After muddling through 2025, the U.S. economy will see a modest uptick this year, said Michael Skordeles, head of U.S. economics for Truist Advisory Services. Skordeles was the featured speaker for the Greater Lehigh Valley Chamber of Commerce's 2026 Lehigh Valley Economic Outlook event, which was held Tuesday at a packed ArtsQuest Center at SteelStacks in Bethlehem. While several speakers took a turn at the podium to share their thoughts on everything from future job growth in the Lehigh Valley to the role of energy in economic development, Skordeles appeared virtually from Atlanta, Georgia. The recent snowstorm dashed his plans to be at the event in person. Tweaking the program at the last minute was somewhat apropos, because adopting and adapting, Skordeles said, will be the overall theme for the economy this year: "We are adopting things like AI (artificial intelligence) and new technology, but we're also adapting to things like shifting trade policy and tariffs and other things." Truist is expecting about 2.3% U.S. economic growth in 2026, compared to 2.0% last year. Average Gross Domestic Product (GDP) growth from 2010-2019 was 2.4%. "It's an uptick, not some big re-acceleration," Skordeles said, of the 2026 prediction. "So please don't walk away saying, 'Oh, he was all roses and sunshine and unicorns.' That's definitely not the case. There are certainly headwinds." Those headwinds include the aforementioned T-word: tariffs. "The problem here is that there's still a lot of uncertainty, where some things are moving back and forth," Skordeles said. "Prices haven't moved up to entirely reflect all of the tariffs. Some of that's going to bleed through. I think it is going to boost inflation a little bit of in the near term." In addition, housing affordability remains a problem not just in the Lehigh Valley, but on a national level. And, according to Skordeles, it's not just higher mortgage rates at the core of the issue; home prices, which have increased nearly 48% since the COVID pandemic, are also a major contributor. Another headwind: job growth has been so-so. "We think we get about roughly 75,000 new jobs per month on average over the course of the year," Skordeles said. "That's not very exciting. That's certainly below average." But there are winds blowing from the other direction, too. Skordeles singled out a number of economic tailwinds, like technology and AI spending. Quarterly capital expenditures among big tech companies like Apple, Nvidia, Intel and Oracle have soared to $110 billion, more than doubling their 2021 levels. Also, wages are outpacing inflation, and consumer spending remains robust, which will likely be boosted by a larger-than-usual federal tax return this year, aided by a number of new and expanded tax breaks. "As we know, universally, when you give people money, they spend it," Skordeles said. Retail sales are at record highs across several categories, including monthly sales of $100 billion at restaurants and bars. "People are seriously going out to eat, drink and be merry. That's still definitely a thing," said Skordeles. Other highlights Rev. James Greenfield, the President of DeSales University, was presented with the 2026 Community Partner Award. During his brief remarks, he made the case for why artificial intelligence will never take the place of a quality education. "I really think it's important for us to harness this new tool," Greenfield said, "but two things AI cannot do: AI cannot love, and AI cannot think. So what we do at a university like DeSales is teach those critical skills." Also, Chamber President and CEO Tony Iannelli taped two segments of "Business Matters." AI advances in medicine was the topic of the first segment, and healthcare and the economy was the topic of the second.
BETHLEHEM, Pa.- After muddling through 2025, the U.S. economy will see a modest uptick this year, said Michael Skordeles, head of U.S. economics for Truist Advisory Services.
Skordeles was the featured speaker for the Greater Lehigh Valley Chamber of Commerce's 2026 Lehigh Valley Economic Outlook event, which was held Tuesday at a packed ArtsQuest Center at SteelStacks in Bethlehem.
While several speakers took a turn at the podium to share their thoughts on everything from future job growth in the Lehigh Valley to the role of energy in economic development, Skordeles appeared virtually from Atlanta, Georgia. The recent snowstorm dashed his plans to be at the event in person.
Tweaking the program at the last minute was somewhat apropos, because adopting and adapting, Skordeles said, will be the overall theme for the economy this year: "We are adopting things like AI (artificial intelligence) and new technology, but we're also adapting to things like shifting trade policy and tariffs and other things."
Truist is expecting about 2.3% U.S. economic growth in 2026, compared to 2.0% last year. Average Gross Domestic Product (GDP) growth from 2010-2019 was 2.4%.
"It's an uptick, not some big re-acceleration," Skordeles said, of the 2026 prediction. "So please don't walk away saying, 'Oh, he was all roses and sunshine and unicorns.' That's definitely not the case. There are certainly headwinds."
Those headwinds include the aforementioned T-word: tariffs. "The problem here is that there's still a lot of uncertainty, where some things are moving back and forth," Skordeles said. "Prices haven't moved up to entirely reflect all of the tariffs. Some of that's going to bleed through. I think it is going to boost inflation a little bit of in the near term."
In addition, housing affordability remains a problem not just in the Lehigh Valley, but on a national level. And, according to
Skordeles, it's not just higher mortgage rates at the core of the issue; home prices, which have increased nearly 48% since the COVID pandemic, are also a major contributor.
Another headwind: job growth has been so-so. "We think we get about roughly 75,000 new jobs per month on average over the course of the year," Skordeles said. "That's not very exciting. That's certainly below average."
But there are winds blowing from the other direction, too. Skordeles singled out a number of economic tailwinds, like technology and AI spending. Quarterly capital expenditures among big tech companies like Apple, Nvidia, Intel and Oracle have soared to $110 billion, more than doubling their 2021 levels.
Also, wages are outpacing inflation, and consumer spending remains robust, which will likely be boosted by a larger-than-usual federal tax return this year, aided by a number of new and expanded tax breaks. "As we know, universally, when you give people money, they spend it," Skordeles said.
Retail sales are at record highs across several categories, including monthly sales of $100 billion at restaurants and bars. "People are seriously going out to eat, drink and be merry. That's still definitely a thing," said Skordeles.
Rev. James Greenfield, the President of DeSales University, was presented with the 2026 Community Partner Award. During his brief remarks, he made the case for why artificial intelligence will never take the place of a quality education.
"I really think it's important for us to harness this new tool," Greenfield said, "but two things AI cannot do: AI cannot love, and AI cannot think. So what we do at a university like DeSales is teach those critical skills."
Also, Chamber President and CEO Tony Iannelli taped two segments of "Business Matters." AI advances in medicine was the topic of the first segment, and healthcare and the economy was the topic of the second.