ARTICLE
Stacy Wescoe//January 27, 2026// While not everything is coming up sunshine, the economy is looking to have a slight uptick in 2026. Speaking at the Greater Lehigh Valley Chamber of Commerce Economic Outlook, Michael Skordeles, head of U.S. Economics and senior vice president of Truist Advisory Services, said he expects to see about 2.3% economic growth in 2026, slightly better than the normal 2%. Of course, the big theme of what is driving much of the economic growth both locally and nationally is the growth of artificial intelligence and getting the infrastructure in place to meet the demand. “Adoption and infrastructure in AI is a big piece of the growth we’ve seen over the past few years,” Skordeles said. Christine Martin, president of PPL Electric utilities, said “electricity has become the new workforce” as the power industry tries to prepare for the increasing surge in demand from data centers and other technology hubs. And it’s not just data centers, she said other things such as the electrification of vehicles is ramping up the demand for electricity and It’s up to the industry to make sure it makes the right investments to make sure it can keep up with the demand while maintaining affordability for customers. Part of PPL’s effort has been working with the PJM regional grid operator, which covers electric distribution across 13 states and Washington, D.C. She said operators need to work together to make sure distribution needs are met, but she also called for more utility input into power generation to help guide the future of power availability. Overall, Skordeles said the economy needs to “adopt and adapt” to maintain its positive growth. He said issues from AI and technology to shifting trade policy and tariffs all need to be watched closely. While the housing market remains a pain point in the economy with high prices and low inventory, lowered interest rates are impacting mortgage rates. He said the fed has lowered the interest rate 1.75% in the last 18 months, and that is showing up now in lower mortgage rates. Still, he said it’s not enough to cure the housing crunch, especially with lower new home construction over the past 15 years. Consumer spending, he said, remains robust. However, he did say that consumer spending increases are growing faster among higher income consumers, than lower income consumers. Gas prices have helped across the board as drastically lower prices have put more money back into people’s pockets. “It’s giving consumers more breathing room,” Skordeles said. “When you give people money, they spend it.” He noted that retail sales are currently at record highs, as is spending at bars and restaurants. While some of that is because of inflation rising the prices, spending is up overall, especially in services versus goods. On the horizon, Skordeles told the crowd he expects there will be continued concern over trade issues, although he doesn’t see it being as bad as 2025, and any governmental disruption – including another shutdown, could negatively impact the economy. He does expect the fed to lower the interest rate even further, probably by spring. He said he thinks they’re aiming for closer to 3% interest in the future.
Stacy Wescoe//January 27, 2026//
While not everything is coming up sunshine, the economy is looking to have a slight uptick in 2026.
Speaking at the Greater Lehigh Valley Chamber of Commerce Economic Outlook, Michael Skordeles, head of U.S. Economics and senior vice president of Truist Advisory Services, said he expects to see about 2.3% economic growth in 2026, slightly better than the normal 2%.
Of course, the big theme of what is driving much of the economic growth both locally and nationally is the growth of artificial intelligence and getting the infrastructure in place to meet the demand.
“Adoption and infrastructure in AI is a big piece of the growth we’ve seen over the past few years,” Skordeles said.
Christine Martin, president of PPL Electric utilities, said “electricity has become the new workforce” as the power industry tries to prepare for the increasing surge in demand from data centers and other technology hubs.
And it’s not just data centers, she said other things such as the electrification of vehicles is ramping up the demand for electricity and It’s up to the industry to make sure it makes the right investments to make sure it can keep up with the demand while maintaining affordability for customers.
Part of PPL’s effort has been working with the PJM regional grid operator, which covers electric distribution across 13 states and Washington, D.C.
She said operators need to work together to make sure distribution needs are met, but she also called for more utility input into power generation to help guide the future of power availability.
Overall, Skordeles said the economy needs to “adopt and adapt” to maintain its positive growth.
He said issues from AI and technology to shifting trade policy and tariffs all need to be watched closely.
While the housing market remains a pain point in the economy with high prices and low inventory, lowered interest rates are impacting mortgage rates.
He said the fed has lowered the interest rate 1.75% in the last 18 months, and that is showing up now in lower mortgage rates. Still, he said it’s not enough to cure the housing crunch, especially with lower new home construction over the past 15 years.
Consumer spending, he said, remains robust. However, he did say that consumer spending increases are growing faster among higher income consumers, than lower income consumers.
Gas prices have helped across the board as drastically lower prices have put more money back into people’s pockets.
“It’s giving consumers more breathing room,” Skordeles said. “When you give people money, they spend it.”
He noted that retail sales are currently at record highs, as is spending at bars and restaurants. While some of that is because of inflation rising the prices, spending is up overall, especially in services versus goods.
On the horizon, Skordeles told the crowd he expects there will be continued concern over trade issues, although he doesn’t see it being as bad as 2025, and any governmental disruption – including another shutdown, could negatively impact the economy.
He does expect the fed to lower the interest rate even further, probably by spring. He said he thinks they’re aiming for closer to 3% interest in the future.