Performing Arts Groups NAICS 7111

Sep 23, 2025 - Federal Judge Rules NEA Policy Violates First Amendment

• 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 The ruling followed a lawsuit filed by the ACLU on behalf of several theatre organizations whose funding had been rescinded.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.

• US consumer mood indicators have weakened, signaling potential headwinds for spending. The Conference Board’s Consumer Confidence Index fell 1.3 points in August 2025, with the decline driven by younger consumers under 35, while confidence among those over 55 improved. Meanwhile, the University of Michigan’s Consumer Sentiment Index slipped to 55.4 in early September from 58.2 in August, down 21% year over year. Inflation expectations held steady, but persistent worries about prices and tariff impacts remain. Consumer sentiment and confidence are leading indicators of discretionary spending, which drives two-thirds of U.S. economic activity. A continued slump suggests households may curb purchases and delay big-ticket decisions, raising risks for retailers, service providers, and the broader economy.
• The US performing arts groups industry is projected to grow at a CAGR of 4.15% between 2025 and 2029, comparable to the overall economy's projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer confidence is expected to improve in the forecast period, which bodes well for the arts, entertainment, and recreation sector. Consumer expenditure for membership clubs, sports centers, parks, theaters, and museums drives much of the revenue for the sector. While this spending dropped severely during the pandemic lockdown, recovery has gradually occurred. Real spending for other live entertainment saw inflation-adjusted spending recover but then slip again in an uneven economy, down 9.4% in Q3 2024. A factor that may curb consumer spending during the forecast window is higher tariffs on consumer goods. Lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026.