At midyear, Sioux Falls CEOs hold more optimistic view of business conditions, local economy

July 13, 2026 - 21:10

Sioux Falls business leaders are entering the second half of the year with a noticeably more optimistic view of both local economic conditions and their own company prospects, according to a new midyear survey. While most CEOs report that current business conditions remain largely unchanged from a year ago, their confidence in the months ahead has strengthened considerably.

The survey, conducted by the Sioux Falls Area Chamber of Commerce, found that a growing number of executives expect revenue and hiring to increase through the end of 2025 and into early 2026. This marks a shift from the more cautious tone seen at the start of the year, when inflation and labor shortages were top concerns.

Several factors are driving the improved outlook. Local demand remains steady, and many firms have adjusted to higher interest rates. Supply chain disruptions have largely eased, and wage pressures, while still present, have stabilized in many sectors. CEOs in manufacturing, health care, and professional services expressed the most confidence, while retail and hospitality leaders were more measured.

The survey also highlighted ongoing challenges. Finding qualified workers continues to be the most frequently cited obstacle, followed by rising regulatory costs. Still, the overall mood is one of cautious optimism. More than half of respondents said they plan to expand their workforce in the next six months, and a similar share expects revenue growth.

Local economic indicators support this sentiment. Sioux Falls has seen steady population growth, a strong housing market, and relatively low unemployment. The city's diversified economy, with strengths in finance, health care, and technology, has helped buffer national uncertainty.

While national headlines often focus on recession fears or political gridlock, Sioux Falls CEOs appear to be looking past that noise. They are betting on local momentum and their own ability to adapt. For now, the prevailing view is that the worst of the economic turbulence is behind them, and the path ahead, while not without bumps, looks brighter than it did six months ago.