 Rich Jachetti |
It’s reasonable to assume the prevailing economic and political landscape will present a unique set of growth opportunities and challenges for PR agency leadership in 2026. To provide guidance and input on decisions critical to the profitability of PR agencies and their ability to adapt to client demands, we at The Stevens/Jachetti Group strongly recommend agency leadership develop a habit of regularly monitoring the following key indicators. Each of these indicators provide valuable insights that can help agency management make agile strategy adjustments and sustain agency relevance, compliance and growth amidst dynamic regulatory and market shifts.
Key indicators
Real GDP growth: A growing economy likely increases marketing and PR budgets as businesses regain confidence and seek to expand, leading to greater demand for PR agency services.
Unemployment rate/labor market data: A low unemployment rate can lead to wage inflation and a competitive talent war for skilled PR professionals, increasing operational costs for agencies.
Inflation rates (PCE and CPI): High core inflation forces PR agencies to potentially raise their fees to cover increased operating costs—like higher salaries—and manage client engagements that were initially estimated at lower costs.
Federal Reserve policy rate: Expected Fed rate cuts can stimulate overall business investment and M&A activity within the PR sector by lowering borrowing costs to finance acquisitions. Lower interest rates can also stimulate consumer spending and business investment, which may prompt brands to increase their advertising and marketing efforts, including PR campaigns, to capitalize on heightened consumer activity.
| This article is featured in O'Dwyer's Jan. '26 Crisis Communications & PR Buyer's Guide Magazine |
Trade policy and tariffs: The persistence of high tariffs creates uncertainty for clients in global supply chains, requiring PR firms to provide increased crisis management and reputation counsel to navigate potential public backlash and shifting consumer confidence and sentiment. The persistence of high tariffs, even if initial volatility fades, will continue to impact supply chains, that potentially put pressure client profit margins, which could lead to smaller PR and marketing budgets; however, this also increases the need for PR firms, particularly firms that specialize in crisis and issues management, to provide strategic counsel during uncertain times.
Legislative actions (e.g., the “Big Beautiful Bill”): Fiscal stimulus provides an economic tailwind through increased government spending, which may create new contract opportunities for PR firms. PR agencies may have a lot to gain by monitoring and then advising clients on new legislation, which may lead to new assignments from clients who turn to their agencies for strategic communication council to help shape public opinion and build relationships with policymakers, and to advocate for their clients’ interests.
Deregulatory efforts: Anticipated deregulation in sectors like energy and infrastructure might lead to a surge in private sector projects, generating demand for PR agencies to help clients with stakeholder communication, community outreach and public affairs.
Artificial intelligence investment and productivity: Increased AI investment is transforming PR agency workflows by automating routine tasks, allowing professionals to focus on strategic counsel and data-driven storytelling, and open a door for PR agencies to have greater access to their clients’ most senior management including the person who occupies the C-suite.
Consumer sentiment vs. spending data: The divergence in consumer data highlights the need for PR professionals to leverage sentiment analysis and data analytics to provide nuanced, data-driven strategies that align messaging with actual consumer behavior and concerns, rather than just public perception. PR agencies also should carefully track the divergence between “soft” low consumer sentiment and “hard” resilient spending. This insight will help PR professionals craft targeted messaging that address specific consumer concerns around affordability.
Corporate earnings growth and margins: Broad-based corporate earnings growth impacts PR agencies by creating a need to communicate this success to investors and stakeholders, which helps build confidence and a positive brand image. It also suggests a healthy private sector, potentially leading to increased PR budgets for campaigns that support business investment and stock market performance.
Monitoring these key indicators: To meet or exceed growth projections in 2026, it is essential that agency management keep a close eye on key economic, legislative and consumer confidence and spending indicators. The indicators referenced in this article provide valuable insight into the management of PR agency business operations, financial health and growth and strategic decision-making, which may include the consideration of M&A opportunities. Real GDP growth impacts client marketing budgets, while unemployment rates and inflation affect an agency’s operational costs like salaries and fees. Furthermore, Federal Reserve policy rates stimulate or hinder M&A activity by influencing borrowing costs and trade policies that may expand client demand for both qualitative and quantitative services they expect their PR AOR will be able to provide.
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Rich Jachetti is Co-Managing Partner at The Stevens/Jachetti Group.
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