July 25, 2025

U.S. and Mid-South Economy: July 2025 News Update

The U.S. economy kept moving forward in July, showing steady—if uneven—growth. Recent data reveal some differences across the country and here at home in Memphis and the Mid-South.

On the national front, things bounced back after a slow start to the year. The Atlanta Fed thinks second-quarter GDP grew by about 2.4% (annualized). For the whole year, growth is projected to come in around 1.5% to 1.6%—quite a bit slower than last year’s 2.8%. Service businesses are doing well, but manufacturing is still facing some headwinds. Inflation is up slightly, now at 2.7%, mainly because of higher import costs and rising rents. Core inflation, which leaves out food and energy, is holding near 3%. The unemployment rate is steady at 4.1%, showing the job market is holding its own, even if it’s not booming.

Memphis and the Mid-South: Regional Developments

Job Market: Memphis saw an unemployment rate of 4.4% in May, just a bit above the national average. Jobs in logistics and manufacturing are holding steady, but it’s still hard to find enough workers in healthcare and skilled trades. Overall, Memphis is tracking with national job trends as things cool off a bit, but there’s still growth in tech and logistics here.
Let’s talk housing: Memphis is getting noticed for how strong its housing market is right now. Home prices are expected to rise by 3–4% this year—better than plenty of other places—thanks to limited supply and lots of people looking for rentals, especially in suburbs like Collierville. Some experts even think Memphis could see the biggest home price gains in the country, with some estimates as high as 10.5%. While rent prices are staying stable, affordability is still an issue for many families.
When it comes to the cost of living, the Mid-South is right in line with the rest of the country. The local Consumer Price Index has gone up 2.4% over the past year. Higher rents and medical bills are putting pressure on family budgets. Groceries have gotten a bit cheaper lately, which helps, but overall, it’s getting more expensive to live here.
Businesswise, things are changing too. Memphis is still getting a boost from strong tech and real estate sectors. At the same time, higher costs (thanks to inflation and tariffs) and some shifts in commercial real estate could slow down new investments in logistics and manufacturing. On the bright side, new factories opening in West Tennessee later this year are expected to create a wave of new manufacturing jobs.
And what about paychecks? The average weekly wage in Memphis is around $1,260, which is less than the national average of $1,394. Big employers here say they’re still focused on staying competitive, especially in jobs where workers are in high demand. Folks in the South, just like people across the country, are spending more on housing and healthcare than ever before.

In short, Memphis and the Mid-South are handling today’s economic challenges well—thanks to strengths in real estate, tech, and logistics. Inflation and rising costs are still on people’s minds, but for now, there’s no sign of a major downturn on the horizon.

This coverage is intended strictly as news and information. For investment decisions, please consult a qualified advisor.

Sources

SEC Disclaimer:
This article is for informational purposes only and does not constitute investment advice, recommendations, or an offer to buy or sell securities. Economic projections and data may change. Consult a registered advisor before making investment decisions.

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U.S. and Mid-South Economy: July 2025 News Update

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