Home Economy Economic Activity RIPEC: Economic ‘mixed signals’ mark Q4 of 2025

RIPEC: Economic ‘mixed signals’ mark Q4 of 2025

By

Christopher Allen

-

02/04/2026

2025 Q4 report — THE RHODE ISLAND economy had a mixed performance in the fourth quarter of 2025, according to the latest report from The Center for Global and Regional Economic Studies at Bryant University and the Rhode Island Public Expenditure Council. / COURTESY RHODE ISLAND PUBLIC EXPENDITURE COUNCIL

PROVIDENCE – The Rhode Island economy had a mixed performance in the fourth quarter of 2025, according to the latest report from The Center for Global and Regional Economic Studies at Bryant University and the Rhode Island Public Expenditure Council. Net sales tax receipts for the quarter decreased by 0.6%, raising concerns about underlying consumer

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PROVIDENCE – The Rhode Island economy had a mixed performance in the fourth quarter of 2025, according to the latest report from The Center for Global and Regional Economic Studies at Bryant University and the Rhode Island Public Expenditure Council. Net sales tax receipts for the quarter decreased by 0.6%, raising concerns about underlying consumer demand, while the state's gross domestic product grew at an annualized rate of 4.4%, matching the national rate and slightly outpacing the New England region's 4.2%. And while the state’s unemployment rate dropped to 4.3% – beating the national average for the first time in two years – “other indicators are softening,” said Edinaldo Tebaldi, professor of economics and vice president of strategy at Bryant. “There is a 'tug-of-war' in the data," Tebaldi said. “While some are now calling this a recession, I see it as a high-stakes transition rather than freefall.” The state added 3,899 jobs in the quarter. But other areas are showing signs of weakness, according to the report. At 63.8%, the labor force participation rate has remained virtually unchanged for the third straight quarter. The education and health services sector added 1,600 jobs, and leisure and hospitality saw an increase of 800 jobs. But nonfarm employment – which includes the trade, transportation, utilities and business services sectors – lost 600 jobs from the previous quarter and has dropped 1,600 jobs from a record high set during the first three months of 2025. Michael DiBiase, CEO and president of the expenditure council, said that overall, economic indicators “sent mixed signals” at the end of 2025, and he called the drop in net sales tax receipts “particularly concerning.” “These headwinds underscore the need for policymakers to place greater emphasis on the state’s long-term competitiveness and policies that support sustained economic growth,” he said. Christopher Allen is a PBN staff writer. You can contact him at Allen@PBN.com.