NYC Economy Grows 2.8% in Q1, Supported by Strong Service Sector

New York City’s economy expanded by 2.8% in the first quarter of 2026, driven primarily by robust growth in the service sector including finance, hospitality, and professional services. Employment figures also improved, with the city adding 35,000 jobs compared to last quarter.

Tourism recovery and an uptick in business travel contributed to gains in hospitality and retail sectors. Meanwhile, financial services benefited from renewed capital market activity despite global uncertainties.

Economists advise local business leaders to stay attentive to inflation trends and labor market dynamics as they plan for sustained growth throughout the year.