Writer: Mirella Franzese
April 2025 — Business confidence among Northern U.S. market leaders edged higher in the first quarter of 2025, despite shifting hiring strategies and concerns over government support, according to caa’s new business sentiment survey.
The quarterly report, which surveys more than 150 executives across metro areas in the United States, showed that 69% rated their regional economy as “strong” while 31% remained neutral. The share of leaders viewing their regional economics favorably jumped from 56% in 4Q24 — a sign of gradually strengthening sentiment.
Executives were even more bullish in their organizational performance, with 92% rating their company’s output over the past six months as 4 or 5 out of 5, reflecting continued business growth despite uncertainty in the macroeconomic environment.
Product and service demand also held steady, with nearly 90% of those surveyed ranking a 4 or 5.
Demand in core sectors such as healthcare, manufacturing, and real estate has shown signs of resiliency despite broader challenges to the global marketplace.
“There shouldn’t be a big hit on my clients, even if the economy changes in the next two to four years, given that my clients are in healthcare and manufacturing — two industries that are normally recession-proof,” said a New Jersey-based consultant.
Slow growth was also a common trend cited by respondents when asked about the likelihood of hiring new full-time staff within the next six months. Just 61% of decision-makers stated that they were looking to expand their workforce — down 7% from 4Q24. New Jersey employers reported more than 3,000 layoffs over the first three months of the year, contributing to reduced optimism this past quarter.
Rising costs and transportation and infrastructure challenges have also curbed the hiring trend, said a Northern market education leader.
“Our students, like everyone else, are navigating the realities of high living costs, including rent and groceries, and this economic pressure also affects our staff, administrators, and faculty…One of the most noticeable impacts has been the increase in students experiencing food insecurity,” he pointed out.
Ratings for local government support were split. While the median rating was 4 out of 5, many respondents selected 2, indicating frustration in some markets with perceived public sector responsiveness to business challenges.
Barring lingering concerns, overall sentiment from Northern executives suggests relative optimism in the economic outlook — supported by internal business performance and resilient demand. However, hesitation over workforce expansion signals caution ahead in the second quarter.
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