As local leaders and University of Puget Sound students scanned the economic charts at the Greater Tacoma Convention Center, the story they saw was one of caution. Delivering that story was Associate Prof. Andrew Monaco, who presented his team’s 2026 Pierce County Economic Index (PCEI) at the Tacoma-Pierce County Chamber’s annual Horizons Economic Forecast on Jan. 28, 2026.
Monaco, chair of the Economics Department, spent months working alongside colleagues — professors Lea Fortmann, Lisa Nunn, and Garrett Milam — to produce the report. The project represents a homecoming for the university, as the PCEI was first developed by Puget Sound faculty in the 1980s and has long guided local decision-makers on the region’s economic outlook. After several years of being produced elsewhere, it has now returned to the university.
“We said, ‘Look, it would be nice to bring it home to where it started,’” Monaco said. “We have the expertise to do this and we care about this community.”
The faculty spent the fall analyzing complex datasets and transforming them into an accessible, narrative-driven analysis. Their findings reveal an economy at a crossroads, influenced by both national policies and local conditions.
From construction to trade to household budgets, the data revealed worrying conditions. Building permits in the region dropped by more than 17%, port activity declined in key categories, and the cost of living — with local inflation at 2.7% — continued to challenge residents.
Monaco stresses that the local economy cannot be separated from decisions being made at the federal level. He points to a number of issues affecting the South Sound, including a government shutdown that hindered data sharing, chaotic tariff policies, and political pressure on the Federal Reserve.
Monaco warns that this climate of uncertainty can cause consumers and businesses to pause major spending and investment decisions.
“This hesitation impacts everything from a family buying a home to a company planning an expansion,” he said.
But there is a silver lining for the region. The report concludes that the county's most pressing issues are intimately tied to its strengths, arguing that challenges like housing affordability are direct outcomes of the area's appeal.
“When people talk about housing affordability being one of the key issues in Pierce County, that comes from the fact that it’s a great place to be,” Monaco said. “It attracts a lot of people.”
The project cements the university's role as a community partner. With the PCEI back on campus, Puget Sound is providing an essential public service by translating complex data into a clear, trusted picture of the local economy.
“We want people to be able to pick up the paper and understand what's going on out there because it’s not always straightforward,” Monaco said. “With this report, we’re telling stories with data and being technically accurate, but also interesting and relevant to people’s lives.”
For Puget Sound students who attended the event, the PCEI project was a lesson in applied economics. Those who attended witnessed first-hand how theoretical models interact with real-world data.
“We work really hard to equip our students with tools to break down these complex ideas,” Monaco said. “They take Econ 101 and they learn about these things in the abstract, but when you go, ‘OK, what does it actually look like in the place where you live?’ It hammers home what you’re doing.”
To view the full 2026 Pierce County Economic Index Report, visit the Tacoma-Pierce County Chamber’s website.
