DES MOINES, Iowa — Results from the latest survey by the Iowa Association of Business and Industry (ABI) shows Iowa employers are entering the second quarter with increased optimism and strong capital investment plans despite still navigating workforce shortages, rising health care costs, and policy uncertainty.
ABI surveys its board each quarter to track business sentiment, identify common concerns, and inform advocacy and programming priorities.
Key findings from the ABI 2026 Quarterly Business Survey include:
- 62% of respondents 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% who are 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,” Nicole Crain, ABI president, said in a recent news release from the Des Moines-based association.
“The results reinforce the need for consistency and clarity as businesses continue investing and navigating challenges,” she said.
The 2Q survey results also show that 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.
According to ABI, the survey findings align with trends seen on a national level. 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 voice of Iowa business since 1903, ABI’s mission is to provide a strong, unified voice to business and industry on issues affecting Iowa employers. Its member companies represent all industry sectors and company sizes in Iowa’s 99 counties. Collectively, ABI members employ more than 330,000 workers.
For previous survey results, business resources, and upcoming events, visit ABI’s website here.
