Northern Virginia business leaders expressed a turnaround in confidence after a rough showing in April, but skepticism remained in the face of tariffs and cuts from the Department of Government Efficiency.

In the third quarter Northern Virginia’s Chamber of Commerce and Pinkston Business Leader Survey, business leaders voiced increased optimism about the economy, with 40% believing the economy would grow over the next six months and 26% expecting it to remain stable. This is a significant change from April, when 59% believed the economy would decline over the next six months, compared to 34% who expected a decline over the next six months in July.

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“As Elon Musk has departed the Trump administration and DOGE actions appear to be subsiding, Northern Virginia business leaders’ optimism has slightly improved; however, major concerns remain,” D.J. Jordan, senior vice president at Pinkston, said in a statement. “Tariff policy and DOGE have created uncertainty about the future playing field, and it appears that some companies are waiting on the sidelines before growing operations and increasing capital.”

“Our Q3 survey makes one thing clear: the federal government’s impact on our regional economy is real and significant,” Northern Virginia Chamber of Commerce President and CEO Julie Coons said. “Despite concerns at the federal level, business leaders are feeling more optimistic about their companies’ ability to navigate uncertainties, highlighting the resilience of our region.”

DOGE was the primary concern of businesses in northern Virginia, with 80% of those surveyed expressing concern about DOGE’s impact on the greater Washington, D.C., economy. Perhaps paradoxically, though DOGE appears to be scaling back operations with Elon Musk’s departure, 56% of business leaders said DOGE had no impact on their businesses over the last six months.

Business leaders have also lessened their worry over the other preeminent issue of the day: tariffs. In April, 53% of business leaders said tariff policies would harm their business growth, while just 41% answered likewise in July. Of those answering in July, 48% expected tariffs to have no impact on their business, while 11% expected them to grow their business.

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The results are another promising sign for President Donald Trump, who faced dire economic predictions after announcing his April “Liberation Day” tariffs. After an additional panic, negotiations turned economic predictions back to being positive.

From July 7 to July 14, Pinkston and the Northern Virginia Chamber of Commerce surveyed 135 CEOs, corporate executives, and business owners in the northern Virginia area. The business leaders led companies in government contracting, aerospace and defense, financial services, technology, professional services, retail, and real estate industries.