Despite perceived economic headwinds, Iowa employers are showing increased optimism heading into the second quarter of 2026, with stronger expectations for sales growth, workforce expansion, and capital investment, according to the latest Quarterly Business Survey from the Iowa Association of Business and Industry (ABI). The survey found 62 percent of respondents expect sales to expand in the coming quarter, while 57 percent plan to grow their workforce, up 20 points from 2026 Q1. Furthermore, 71 percent intend to make capital expenditures, including 19 percent who are planning major investments. The overall economic outlook improved, with 48 percent reporting optimism, up from 37 percent previously. ABI President Nicole Crain says, “We’re seeing growing confidence among Iowa employers heading into the second quarter, even as uncertainty remains in today’s economy. The results reinforce the need for consistency and clarity as businesses continue investing and navigating challenges.” Workforce shortages remain the top concern for many companies, followed by rising health care costs, supply chain pressures, and energy costs. Open-ended comments cited tariff instability, property tax proposals, and federal policy uncertainty. The results align with national trends among manufacturers, who report rising optimism alongside worries over trade and input costs. View previous survey results at www.iowaabi.org.
