Poll: Engineering Firms' Optimism Rebounds

By ALLISON SCHNEIDER, ACEC Research Institute

When the ACEC Research Institute last surveyed engineering firms in April 2025 about their business outlook, the results painted an ominous picture of the economy in general which bled over to concern about the future of the industry. Since that time, the outlook has improved considerably but is not as positive as in Q1 2025.

The following are some key observations from the latest ACEC Research Institute Business Climate Lightning Poll, conducted among 548 respondents from June 2-9, 2025. In it, engineering firm leaders relayed optimism about the U.S. economy.

Why it matters: This resurgance suggests a positive shift in the engineering sector, which could foreshadow increased investments and projects.

The big picture: This mid-quarter pulse check reflects broader economic trends and could influence future business strategies for engineering firms.

What's next: As optimism grows, firms may start planning for expansion and exploring new opportunities, contributing to economic growth.

Key Economic Highlights

Improved Outlook: Confidence in the broader U.S. economy has surged with a Net Rating of +36, more than tripling from the +11 rating from the previous quarter. This marks a significant positive shift since April, as leaders’ economic outlook stabilizes.

Industry and Financial Confidence Hold Steady: While confidence in the engineering and design services industry maintains a strong Net Rating of +73, this represents a modest nine-point dip from Q1 2025.

Firm leaders’ confidence in their own financial health stayed steady with a Net Rating of +81, down just one point from Q1.

Concerns Shifting but Still Present

Good, Not Great: While improved, overall economic sentiment in Q2 remains lower than Q1 2025.

Inflation Anxiety Easing: Concern about inflation, although still prominent, has slightly abated. The Net Rating dropped to +51 from a high of +61 in April, suggesting early signs of relief.

Tariff Pressures Softening: The impact of tariffs, an ongoing discussion for the industry, has also seen a slight decline in concern with the Net Rating falling from +49 last quarter to +41.

Recession Watch Still Active: Despite the improved overall outlook, 48% of respondents still believe a recession is likely within the next six months. Though the results are six-points better than the previous survey, the rating remains considerably elevated compared to the 35% recorded in Q1 2025.

Industry Perspective

"The results from this poll show a more hopeful sentiment emerging among engineering leaders, particularly around the direction of the U.S. economy,” said Daphne Bryant, executive director of the ACEC Research Institute. “This is a stark contrast from our last full quarterly survey; however, it's clear that inflationary pressures and recession fears continue to cast a shadow, underscoring the need for strategic foresight as the industry navigates through uncertainty.”

The ACEC Research Institute continues to monitor these business indicators closely as it begins its work on the next Business Sentiment Survey for Q3.

About the ACEC Research Institute

The ACEC Research Institute is the leading source of knowledge and thought leadership for and about the engineering and design services industry. Through data, research, and insight, the Institute helps firms anticipate trends, address challenges, and seize opportunities. The ACEC Research Institute is the independent research arm of the American Council of Engineering Companies (ACEC) — the business association of the nation’s engineering industry.