The D.C. Policy Center’s Alice Rivlin Initiative on Economic Policy & Competitiveness launched the Quarterly Business Sentiments Survey in January 2024. The objective of the survey is to provide real-time information on the business community’s experiences to elected officials, the media, and the public.
The 2026 Quarter 2 edition of the survey, circulated in April, asked respondents to share their perspectives on business conditions in the preceding months, economic expectations for the region, and experiences with the current hiring environment.
The 2026 Quarter 3 survey will open on Friday July 17, 2026, and remain live for two weeks. Representatives from any business or nonprofit located in the D.C. region are welcome to participate. Participants should be knowledgeable of industry outlooks and involved in high-level decision-making.
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Each year, the D.C. Policy Center’s Rivlin Initiative for Economic Policy and Competitiveness conducts its quarterly Business Sentiments Survey to gauge businesses’ experiences and expectations in the District and the broader region. We recently finished the second round for 2026.
The results show that a notable share of surveyed businesses maintained pessimistic six-month economic expectations amid rising cost pressures and lackluster demand. In addition, surveyed businesses reported greater difficulty hiring qualified job candidates over the past two years, with applicants’ salary expectations being one of the primary challenges.[1]
Finding #1: A notable share of surveyed businesses reporting changes in conditions over the past three months experienced declining demand alongside rising input prices.
A majority of surveyed businesses reported minimal or no change in conditions in the past three months. However, among surveyed businesses that reported a change in conditions in the past three months, 30 percent indicated that demand for core products or services had decreased, 36percent reported that input prices had increased, and 15 percent stated that the supply for their core products or services had decreased. When asked about notable trends in the past three months, several respondents reported a decline in foot traffic near their affiliated businesses. Respondents also noted that operating costs had increased.[2]
Finding # 2: Surveyed businesses report limited changes in staffing and revenue in the past three months, but revenue declines remain notable.
With respect to changes in staffing and revenue in the past three months, a majority of surveyed businesses reported minimal or no change. But as in the previous round, a notable share – 31 percent—indicated declining revenue in the past three months.
Finding # 3: Surveyed businesses hold pessimistic six-month economic expectations.
Survey respondents continue to hold pessimistic six-month expectations for the District, regional, and national economies. Nearly two-thirds (62 percent) expect the District’s economy to be somewhat or much weaker, while 60 percent expect the regional economy to be somewhat or much weaker and 69 percent expect the national economy to be somewhat or much weaker. By contrast, only 15 percent expect the District, regional, and national economies to be somewhat or much stronger over the next six months.
Finding # 4: Increased difficulty hiring qualified workers among surveyed businesses over the past two years.
Among surveyed businesses, hiring conditions have become more challenging over the past two years. Forty-two percent reported that hiring qualified workers had become somewhat or much more difficult, 14 percent reported that it had become somewhat or much less difficult, and 24 percent reported no or minimal change in hiring difficulty. The remaining 20 percent reported that they had not hired during the past two years.
Surveyed businesses reported that applicants’ salary expectations, insufficient experience, and lack of necessary skills were among their top hiring challenges. When asked which skills employees who are most successful—past or present—frequently possess, respondents identified problem-solving, written or verbal communication, and customer service as the top three skills.
Surveyed businesses continue to face a difficult environment.
The results from the second round of the Quarterly Business Sentiments Survey suggest that some surveyed businesses faced a period of weaker demand and higher input costs over the past three months. In addition, surveyed businesses hold a pessimistic outlook for the local, regional, and national economies over the next six months. Surveyed businesses also reported greater difficulty hiring qualified workers over the past two years, with applicants’ salary expectations identified as a leading hiring challenge. Overall, as in the previous round, these findings suggest that businesses continue to operate in a difficult environment.
[1] Distributed online in mid-April 2026, the survey asked about local businesses’ experiences over the preceding three months, their six-month economic outlook, and workforce challenges. A total of 208 respondents completed the survey. Most respondents were business owners or executives (89 percent). The raw sample was dominated by established, small businesses, with 55 percent reporting being in operation for more than a decade and 84 percent employing 20 or fewer people. The most represented sectors in the raw sample were professional, scientific, and technical services (22 percent), restaurants (12 percent), and health care (11 percent). Survey responses were weighted using 2025 Q3 QCEW data to reflect the D.C. region’s industry composition. Nevertheless, the survey has some limitations. For instance, the reported sentiments may not be representative of all local businesses because non-respondents may hold different views than respondents. Findings #1–3 had a weighted sample size of 207.4. Findings #4–5 had a weighted sample size of 95.4. Please note that this report adopts the organization and structure of past survey reports.
[2] The second quarter CFO survey by the Federal Reserve Bank of Richmond and the Federal Reserve Bank of Atlanta found that “inflation jumped back to the top of the list of CFOs’ most pressing concerns, followed closely by non-labor costs.”