Performing Arts Groups NAICS 7111

Nov 20, 2025 - Arts and Entertainment Among Sectors Contracting in October: ISM

• While 11 services industries reported growth in October, six industries reported a contraction, including the Arts, Entertainment, and Recreation industry, according to the latest ISM Services PMI Report. Executives in the Arts, Entertainment, and Recreation industry reported decreases in business activity, new orders, employment, and inventories in October. Other industries reporting contraction during the period include Management of Companies & Support Services; Finance & Insurance; Public Administration; Other Services; and Construction. Industries reporting growth during the period were Accommodation & Food Services; Retail Trade; Wholesale Trade; Real Estate, Rental & Leasing; Health Care & Social Assistance; Utilities; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Information; Professional, Scientific & Technical Services; and Educational Services. Overall economic activity in the services sector returned to expansion in October, registering 52.4%.
• Performing arts groups may face challenges due to softening consumer sentiment and confidence in November and October 2025, reflecting a growing weakness in discretionary spending. The University of Michigan’s Index of Consumer Sentiment dropped 6.2% month-over-month in November's preliminary results to 50.3, a 29.9% year-over-year decline. The Current Economic Conditions Index fell to 52.3, and the Expectations Index to 49, down 36.3% annually. Year-ahead inflation expectations rose to 4.7%, while long-run expectations declined to 3.6%, with increased uncertainty across both horizons. Meanwhile, the Conference Board’s Consumer Confidence Index edged down to 94.6 from 95.6 in October, as improved current conditions (Present Situation Index up to 129.3) were offset by weaker short-term expectations (Expectations Index down to 71.5). Inflation expectations rose to 5.9%, and over half of consumers anticipated higher interest rates.

• According to a report in Playbill, a federal judge ruled in September 2025 that a National Endowment for the Arts’ (NEA) policy barring funding for projects promoting “gender ideology” violates the First Amendment. The policy, introduced in response to executive directives, required grant applicants to disavow programs supporting diversity, equity, and inclusion. The court found this restriction unconstitutional, noting it compelled self-censorship and contradicted the NEA’s founding mandate to award grants based on artistic merit alone. The ruling followed a lawsuit filed by the ACLU on behalf of several theatre organizations whose funding had been rescinded.
• The price of admission to movies, theaters, and concerts rose 3.4% in August 2025 compared to a year ago, reflecting higher demand and increased operational costs, according to the Consumer Price Index from the US Bureau of Labor Statistics (BLS). Month over month, the price of admission fell 0.9% in August 2025. Employment by performing arts groups rose 12.4% in July 2025 compared to a year ago, according to data from the BLS. In the past decade, industry employment was up 37.4%, faster than the 13% growth in overall private employment. Average wages for nonsupervisory employees in the industry dropped 14.5% in July 2025 year over year, reaching $29.55 per hour. Total revenue for performing arts companies in Q4 increased 8.6% compared to a year ago and fell 4.2% compared to the previous quarter, according to the latest data from the Census Bureau.