Orlando-area businesses grew more cautious in the second quarter of 2026, with confidence hitting two-year lows amid renewed inflation concerns, according to the latest Orlando MSA Business Conditions Survey released by the Orlando Economic Partnership (Website) earlier this week.
The quarterly survey, administered by Stetson University’s Center for Public Opinion Research (Website), collected 127 responses from businesses across Orange, Osceola, Seminole, and Lake counties between April 1 and June 30, and those responding businesses collectively employ more than 160,000 people in the region.
According to the results, confidence in firms’ own prospects fell to 61%, which is the lowest since Q2 2024, while confidence in the U.S. economy dropped to 35%, which also happens to be a two-year low. The share of businesses expressing no confidence in the national economy rose to 33%.
Future expectations, while declining from Q1 2026, remain higher than they were a year ago across all major indicators (which include revenue, innovation, profitability, employment, and investment), suggesting businesses are adapting to uncertainty rather than retreating from it. Fifty-five percent of respondents reported higher revenue than a year ago, though the share reporting declines also rose notably from Q2 2025.
Cost pressures emerged as the dominant challenge for the first time in nearly a year, surpassing political and economic uncertainty. Staffing issues, by contrast, declined 10 percentage points from a year ago, consistent with a cooling labor market and a deeper pool of qualified applicants. Forty-three percent of respondents said they were maintaining current staffing levels, consistent with what the survey described as a national “no-hire, no-fire” environment.
The survey’s special focus this quarter examined Downtown Orlando as an economic driver. Three in four respondents — 75% — rated downtown as a generally safe and welcoming place to conduct business. But the same businesses overwhelmingly believe improvements are needed: 85% said downtown improvements would positively affect business attraction and investment in the region. Public safety and security ranked as the highest-priority improvement, followed by retail and amenities, business incentives, parking availability, public space upgrades, residential housing options, and two-way streets.
“Businesses across the Orlando region became more cautious in Q2 2026 as renewed inflation appeared to weigh on sentiment,” said Sara Reynolds, Director of Research & Strategy at the Orlando Economic Partnership. “However, businesses continue to adapt and forecast growth even as the environment remains challenging. This quarter’s special focus on Downtown Orlando reveals broad agreement that a strong downtown benefits the entire region.”
Read the full survey yourself on The Partnership’s website.
