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Economic sentiment slips slightly in Q2, Invest: Biz Survey finds
Writer: Ryan Gandolfo July 2025 — Business and economic sentiment wavered slightly in the second quarter of 2025 as leaders pointed to ongoing macroeconomic uncertainty, according to a new survey from caa. Geopolitical tension, shifting trade dynamics, and the first reported GDP contraction since 2022 (-0.5%) shaped macro sentiment, while industry leaders remained positive on company outlook but less rosy on regional economic sentiment, hiring plans, and local government support....
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The Regional Economic Sentiment Index, drawn from the Invest: Business Sentiment Survey, tracks perceptions of economic strength across 20 U.S. metro areas. The index is based on a standardized question posed to senior executives and public officials featured in Invest: reports, asking them to rate the strength of their regional economy on a scale of 1 to 5.
The 2Q25 survey revealed a modest decline in regional economic sentiment, driven by rising uncertainty, elevated costs, new tariffs, and the absence of interest rate cuts. Business leaders, particularly in the Northern region, expressed growing concern about the macroeconomic outlook, marking a shift from the optimism seen earlier in the year.
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caa is an integrated media company that connects the dots in the markets it covers, providing business intelligence to businesses, executives, investors, and entrepreneurs across its digital and print platforms. It produces annual economic reports and engaging content on important US metro regions, while forging strategic connections through its conferences and events.