Iowa employers are entering 2026 with a focus on stability and continued investment, according to the Iowa Association of Business and Industry’s (ABI) latest Quarterly Business Survey. The survey of the state’s business leaders found that 66 percent of respondents say their businesses are growing, while 29 percent report that conditions are flat. Nearly two-thirds expect sales to increase in the next quarter, up sharply from the previous quarter, and 37 percent expect to expand their workforce. Investment remains a priority for the majority of Iowa businesses, with 66 percent of respondents planning capital expenditures. A majority of respondents, 58 percent, reported a neutral economic outlook for the first quarter of 2026, while 54 percent believe Iowa is headed in the right direction. ABI President Nicole Crain says, “While most respondents report a neutral outlook for the first quarter, they are continuing to make key investments in their business operations and people. Businesses are looking for consistency and predictability in an uncertain national environment.” Businesses cited workforce shortages, rising costs, regulatory uncertainty, and federal policy volatility as their top concerns.