ABI Survey Reflects Growing Confidence in a Shifting Economic Environment

DES MOINES, Iowa - Results from the Iowa Association of Business and Industry's (ABI) second quarter 2026 Quarterly Business Survey show Iowa employers entering Q2 with increased optimism and strong capital investment plans, while continuing to navigate workforce shortages, rising health care costs, and policy uncertainty.

Key survey findings include:

• 62% expect sales to expand in the next quarter
• 57% plan to grow their workforce, up from 37% in Q1
• 71% plan to make capital expenditures, including 19% planning significant investments
• 48% report an optimistic outlook for the economy, up from 37% in Q1

"We're seeing growing confidence among Iowa employers heading into the second quarter, even as uncertainty remains in today's economy," said Nicole Crain, ABI President. "The results reinforce the need for consistency and clarity as businesses continue investing and navigating challenges."

Workforce challenges remain the top concern, followed by health care costs, supply chain pressures, and energy costs. Open-ended responses also highlight ongoing tariff instability, property tax proposals, and broader policy uncertainty, particularly at the federal level.

These findings align with national trends. Recent data from the National Association of Manufacturers (NAM) shows rising optimism among U.S. manufacturers alongside continued concern about trade uncertainty and input costs, reinforcing the importance of stable supply chains and predictable policy environments.

The survey results come as ABI opens nominations for the 2026 Coolest Thing Made in Iowa contest, which celebrates the state's manufacturing industry and the Iowans behind its most innovative products. Nominations are open through March 27 at www.coolestthingia.com.

ABI surveys its board each quarter to track business sentiment, identify common concerns, and inform advocacy and programming priorities. For previous survey results, business resources, and upcoming events, visit www.iowaabi.org.