Fall 2025 Business Pulse Survey reveals firms seeking new markets, reducing costs, and selectively adopting AI

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The Fairfax County Department of Economic Initiatives announced the findings from its Fall 2025 Business Pulse Survey, which indicates a decrease in local business optimism amid rising costs and declining sales. The survey, a confidential poll designed to capture a snapshot of the county’s economic health and evolving business landscape, collected 450 responses between September 24 and October 25, 2025. 

The survey found that 51% of businesses expressed they are not optimistic about their prospects over the next six months, representing a shift in sentiment from the previous spring survey.  This tempered optimism reflects real financial pressures: 80% of firms reported increased operational costs while 64% experienced declining sales or revenue.  This pressure is heightened by the federal spending landscape, as 73% of firms with ties to federal contracts reported a decline in those revenue streams over the last six months.

The majority of survey respondents were very small businesses—sole proprietorships or companies with one to four employees—making these financial pressures especially significant.

Fairfax County businesses are pursuing proactive strategies in response to economic realities. Over the next six months firms plan to seek new markets or customers (57%) and reduce operational costs (43%). The survey revealed a split approach to utilizing artificial intelligence (AI): 33% of businesses regularly utilize artificial intelligence tools, primarily for marketing, sales and operational efficiency. Conversely, 43% of business respondents have not adopted the technology and are not currently considering it.
“These results underscore the complex financial headwinds our businesses are navigating, particularly the pressure from rising costs combined with softening demand,” said Rebecca Moudry, Director of the Department of Economic Initiatives. “The data reinforces Fairfax County’s commitment to providing targeted resources - through Fairfax CORE and other programs - that help our businesses explore new opportunities and evolve in this changing market.”

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The Fairfax County Department of Economic Initiatives (DEI) is a catalyst to create a vibrant and sustainable Fairfax County. Through collaboration, innovative solutions, and partnerships the department develops and implements strategies to drive business growth, improve the business climate and further diversify the County’s economy.  DEI’s focus is on the wide array of economic drivers, including inventive projects and business incentives; small business growth/expansion and advancement of strategies, research and innovative programs.

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