Metro Milwaukee business leaders are more optimistic in early 2025 about their company’s growth prospects than they were at the same time last year, according to the latest Metropolitan Milwaukee Association of Commerce Business Outlook Survey.
The first quarter outlook survey of 62 Milwaukee area firms found 77% expect a year-over-year increase in sales for the entire year when compared to 2024 results. A year ago, 61% expected a sales increase for the year when comparing to 2023 results.
“Current expectations for the calendar year mark a significant improvement over what businesses expected at the beginning of 2024,” said Bret Mayborne, vice president of economic research at MMAC. “While annual expectations are strong, first-quarter forecasts remain on the low side overall, suggesting the local economy will recover slowly in early 2025 and gather momentum as the year moves forward.”
The survey found 66% of firms expect an increase in profits this year, compared to 61% at the same time last year.
However, economic uncertainty remains the top business concern for area firms, as it was in the fourth quarter survey. A year ago, continuing economic growth and recovery was the top concern.
Perhaps as a reflection of uncertainty, capital expenditure plans are less robust this year with 31% of firms expecting to increase their spending and 21% expecting to decrease it. A year ago, 43% of firms planned to increase capital expenditures while 17% expected a decrease.
Hiring expectations are a little stronger than a year ago with 58% of firms expecting to increase their total employment level this year, 40% planning no change and just 2% expecting a decrease. A year ago, 44% of firms forecasted increased hiring, 47% planned no change and 9% anticipated cutting jobs.
As for the first quarter itself, 42% are expecting a rise in sales, 40% expect a rise in profits and 34% expect an increase in employment compared to the same period in 2024.
Here’s a look at how those figures compare over recent surveys:
