NJBIA Business Outlook Survey Spotlight: NJ’s Economic Climate

NJBIA released its 67th annual Business Outlook Survey on Dec. 2. While much of the attention of the survey focused on 2055 energy cost increases and tariff impacts, there were many other facets of the survey.

Today, we look at deeper at New Jersey’s economic climate found in the 2026 Business Outlook Survey.

NJ’s Economic Climate   

When respondents were asked about the current business conditions in their industry, 34% said they were experiencing a slowdown – the same percentage as last year – while 14% said they were experiencing an expansion.

Eight percent said their industry was moving from a slowdown to a recovery, while 5% said they were moving from an expansion to a slowdown.

A majority (40%) said business conditions in their industry were staying the same.

Fifty-nine percent said they had no plans to expand, while 26% said they would expand in another state, compared to 12% that would expand in New Jersey. Another 3% said they would expand in New Jersey and another state.

As a location for new or expanded facilities, 22% listed New Jersey as very good or good – a six-percentage point decline from 2024. Another 36% described the Garden State as fair, and 43% ranked it as poor.

When asked if their business had postponed installation of equipment or any expansion due to delays in permitting or a regulatory process, 17% said yes – a five-percentage point jump from a year ago.

The needle continues to move in the right direction on New Jersey’s appeal for people in their golden years, albeit slowly, with 47% saying they are planning to keep New Jersey as their domicile in retirement. That number is up 15 percentage points from six years ago.