U.S. engineering firms gained economic confidence entering 2026

Engineering firm leaders are significantly more optimistic about the U.S. economy than they were just three months ago, according to ACEC Research Institute’s Q1 2026 Engineering Business Sentiment survey.

Confidence in the U.S. economy rebounded 11 points to a +45 net rating as firms manage for steady performance rather than rapid expansion, an ACEC news release says. The quarterly survey of 628 executives at engineering and design firms nationwide finds that firm-level financial confidence stands at a robust +82. 

The gains in economic confidence were broad-based, with improvements registered across every firm size category and geographic region. Market performance remains uneven, though. Data centers (+89 net rating) and energy and utilities (+78) continue to lead all sectors in current sentiment, while government buildings, education, and transit have softened significantly from year-ago levels.

The survey found an increase in the number of firms developing AI strategies. Expectations for AI's positive business impact are overwhelming among respondents, and more than half of firms report investing in dedicated AI-focused talent. Firm leaders also express confidence that most of their current workforce can adapt to emerging digital skills and processes.

Labor market pressures remain, though the survey detected early signs of moderation. Median open positions per firm edged down to five, and salary increases are cooling, averaging 7% for new hires and 6% for existing employees, both below prior-year levels. Staff turnover is stable at an average of 8% annually.