The Iowa Association of Business and Industry released the results of its latest business survey of Iowa business leader’s third quarter expectations. The survey shows a weakened outlook in sales, hiring, investments and growth.

“As 2025 unfolds, we’re seeing a leveling out of expectations across Iowa’s business community,” ABI President Nicole Crain stated in a press release. “This quarter’s results show a business climate that’s steady, but not without pressure. Our members remain strategically focused — still investing, still hiring — but with greater awareness of the economic headwinds that exist.”

Q3 survey highlights:

• Sales: 33% expect sales to expand — unchanged from Q2 but down from 40% in Q1. Another 45% expect sales to remain flat, while 12% anticipate a decline.
• Hiring: 33% plan to increase headcount; 54% expect no change.
• Capital expenditures: 57% plan to invest — down from 63% in Q2 and 72% in Q1.
• Business health: 33% report growth, 39% say business is flat, and 15% report struggling operations.
• Economic outlook: 21% describe their outlook as optimistic—down sharply from 50% in Q1 but consistent with Q2 sentiments. A majority (60%) expressed a neutral view.

ABI reported that workforce challenges remain the most consistent concern across all three surveys this year. In open-ended responses, business leaders also pointed to tariffs, health care changes, and supply chain disruptions as factors influencing operations and decision-making. Several noted a continued focus on internal improvements and acquisition opportunities.

Most respondents (63%) believe the recently passed “One Big Beautiful Bill” will have a somewhat or very positive impact on their business or industry. Meanwhile, 90% expressed concern about the federal deficit and its potential economic implications.

ABI surveys its board each quarter to track business sentiment, identify common concerns, and inform advocacy and programming priorities. To read the full results, click here.