Performing Arts Groups NAICS 7111

Jan 19, 2026 - Higher Growth Forecast

• The US performing arts industry is projected to grow at a CAGR of 5.08% between 2025 and 2029, according to an updated forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is faster than the overall economy's projected growth. Spending by US households and tourists, foreign students, and other visitors largely drives the arts, entertainment, and recreation industries. Consumer confidence is expected to improve in the forecast period, which bodes well for the sector. Further increases in tariffs and decreases in immigrant labor supplies may push price levels higher and postpone the improvement of inflation. The slow rise of employment and higher consumption prices may limit expansion of real disposable income to about 1.8% in 2025 and 1.6% in 2026.
• The price of admission to movies, theaters, and concerts rose 6.7% in December 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 2.4% in December 2025. Employment by performing arts groups rose 7.6% in August 2025 compared to a year ago, according to data from the BLS. In the past decade, industry employment was up 37.9%, faster than the 13% growth in overall private employment. Average wages for nonsupervisory employees in the industry dropped 11.1% in August 2025 year over year, reaching $29.96 per hour. Total revenue for performing arts companies in Q2 increased 17% compared to a year ago and increased 2.9% compared to the previous quarter, according to the latest data from the Census Bureau.

• While five services industries reported contraction in December, 11 industries reported growth, including the Arts, Entertainment & Recreation industry, according to an ISM Services PMI Report. Executives in the Arts, Entertainment & Recreation industry reported an increase in new orders, employment, imports, new export orders, and inventories, along with a decrease in business activity in December. Other industries reporting growth during the period were Finance & Insurance; Accommodation & Food Services; Transportation & Warehousing; Mining; Health Care & Social Assistance; Information; Retail Sector; Wholesale Trade; Public Administration; and Utilities. Industries reporting contraction during the period include Management of Companies & Support Services; Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Educational Services; and Construction. Overall economic activity in the services sector continued to expand in December, registering 54.4%.
• For US performing arts organizations, January 2026 consumer sentiment suggests a cautiously stabilizing environment, though one that remains challenging for ticket sales and contributed revenue. The University of Michigan Index of Consumer Sentiment rose to 54.0, its highest level since September 2025, but still sits nearly 25% below January 2025, highlighting ongoing pressure on discretionary spending. Recent gains were driven by lower-income consumers, while sentiment among higher-income households eased, potentially weighing on premium ticket purchases and major donations. At the same time, year-ahead inflation expectations held at 4.2%, reinforcing consumer focus on essential expenses. Historically, spending on live performing arts is closely linked to consumer confidence and income expectations. While the modest improvement in sentiment may help stabilize attendance, performing arts groups are likely to face continued headwinds until confidence and economic conditions strengthen more meaningfully.