AI-assisted summary Milwaukee area businesses are cautiously optimistic about the latter half of 2025.

Job growth is expected in the coming months, despite a flat trend in the first half of the year.

Top business concerns include economic growth, inflation, and talent acquisition.

Milwaukee-area businesses are cautiously optimistic about the final stretch of 2025, according to a new survey by the Metropolitan Milwaukee Association of Commerce.

“The local economy has been rather sluggish in 2025’s first half, but survey results for the third quarter suggest some positive momentum,” said Bret Mayborne, MMAC’s vice president of economic research.

“On a quarter-to-quarter basis, sales expectations held firm while profit and employment forecasts improved from second-quarter levels,” Mayborne said.

“Annual expectations for the year overall remain tepid with one notable exception – capital spending plans improved notably from those expressed at the beginning of 2025,” he said.

MMAC surveyed 75 metro Milwaukee firms.

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Here are three takeaways:

Businesses expect rising sales

About 55% of businesses surveyed expect a rise in sales compared to the previous year, and 55% expect higher profits in 2025 compared to 2024. Roughly 19% of businesses expect a decline in sales and 27% expect no change.

Also, 46% of manufacturers expect an increase in sales compared to 59% of non-manufacturing companies. Roughly 35% of manufacturers expect a sales decrease compared to 10% of non-manufacturers.

Small businesses also expect more sales compared to larger business at 60% and 46%, respectively. Meanwhile, 29% of larger firms expect a sales decrease compared to 13% of smaller firms.

Job trend is flat but gains expected

The job trend during the year’s first half has been “uneven – three months up year-over-year and three months down and on average,” according to the survey.

However, 48% of all businesses surveyed expect job gains for the year and 15% see declines, with 37% expecting no change.

By industry, 53% of non-manufacturers expect job growth in 2025 compared to 38% of manufacturers.

“This marks a reversal of the trend from 2025’s start when manufactures expressed a higher level of optimism on jobs,” the survey said.

Growth and inflation are top concerns

The survey asked businesses to rank their top concerns for the year and here’s how they responded:

Continuing economic growth & recovery Price inflation Talent attraction/labor shortages Health care costs Tariffs Taxes and regulation Supply chain issues

“Survey results indicate most employers (58%) see price inflation falling in the 3% to 5% range in 2025,” the survey states.

“An additional 27% forecast inflation of 0% to 2%. While only 13% see price increases of 6% or higher, this percentage marks an uptick from the 8% who saw high inflation at the beginning of the year,” it said.