CIRT Sentiment Index Q3 2025 Optimistic After Sharp Decline in Q2

After sharp declines in both the Sentiment Index and Design Index between the first and second quarters of 2025, the third quarter CIRT Sentiment Index has nearly rebounded to early 2025 and late 2024 levels. The Sentiment index rose to 65.0 from 54.0 in the second quarter (67.9 in Q1 2025; 64.1 in Q4 2024). While the Design Index rose significantly to 58.5 from 44.9 in the previous quarter, it still remains below the overall Sentiment Index – a pattern that emerged in Q4 2024 and has persisted since. The last time the Design Index fell below the Sentiment Index was during the economic turbulence of Covid-19, yet that time it rebounded by the end of 2020 and continued to lead through 2024.

Members highlighted strong pipelines, improving views of the U.S. economy and easing cost pressures as the drivers of the rebound. Though, while optimistic, the design activity remains cautious.

In addition to the market and economic trends, the Report also touched on matters related to specific impacts/approaches to the tariffs, including perceived vulnerabilities, cost/timing implications, and related business strategies. Members also provided updated views on labor conditions, including staffing needs and experiences; while also commenting on foreign labor and special skills visa-related use/challenges.

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Q3_2025_CIRT FINAL.pdf

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