- 78% of small and mid-sized business owners are optimistic about
prospects for their own business, near the 23-year survey high mark
of 79% recorded a year ago.
- Half of owners are optimistic about the national economy, just
under the survey-high level of 56% recorded last fall.
- 56% are optimistic about their local economy, compared to 62%
six months ago.
PITTSBURGH, March 3,
2025 /PRNewswire/ -- PNC's latest semi-annual survey
of small and mid-sized business owners, which concluded
Feb. 4, indicates sustained optimism
not just for their own businesses, but for the national and local
economies as well.
Nearly eight in 10 (78%) business owners are optimistic about
prospects for their own business, little changed from last fall
(76%) and near the all-time high (79%) for the survey, recorded a
year ago.
Now in its 23rd year, the survey found 50% of owners
are optimistic about the national economy hovering just under the
survey-high levels recorded last fall (56%) and spring (55%), while
a majority (56%) are optimistic about their local economy – a drop
from the survey-high mark measured a year ago (63%).
"The latest results from PNC's survey of small and
mid-sized businesses demonstrate the U.S. economy remains in solid
shape in the spring of 2025, with continued strong demand and a
good labor market," said Gus
Faucher, Chief Economist of the PNC Financial Services
Group.
Higher revenue businesses are among those more likely to be
optimistic about the national and local economy as well as
prospects for their own business. This same tier of business owners
is most likely to anticipate increasing sales in the coming months
and to expect to see an increase in profits in the next six
months.
"Demand from both consumers and businesses is increasing,
driving solid gains in revenue and profit across industries. The
U.S. economy should continue to expand through the rest of this
year and into 2026, supporting small and mid-sized businesses,"
Faucher said.
Zooming out, the overall portion of business owners expecting
increasing sales in the coming six months is unchanged since fall
(65%) and up from last spring (55%). In parallel, profit
expectations for the next six months remain steady with a majority
(57%) expecting an increase, matching the reading last fall and
near the level from a year ago (52%).
Manufacturing and construction sector businesses are among those
most likely to expect sales increases while services businesses are
least likely to expect an increase.
Other findings in the survey include:
- Inflation Concern Continues: Inflation is the
predominant concern among business risks for owners, with more than
four in 10 (43%) extremely concerned, unchanged from six months ago
and more than double the level from last spring (20%).
- Prices Down from Peak: Just over half (53%) of business
owners plan to increase prices in the next six months, a drop from
last fall (61%) and approaching the level from a year ago (47%).
Among businesses expecting to increase customer prices, two in 10
(20%) plan to raise them by 5% or more, about half as many as last
fall (38%).
- Holding off on Hiring: Fewer than two in 10 (15%)
business owners expect to increase the number of full-time
employees in the next six months, similar to the level last fall
(18%) and significantly less than a year ago (21%).
- Stocking Up: The portion of business leaders predicting
an increase in inventory in the next six months is at a survey high
(42%), similar to last fall (41%) and up from (34%) a year
ago.
- Forecasting Fall in Cash Reserves: A quarter (26%) of
business owners are expecting their cash reserves to be lower next
year than they are now, up significantly from last fall (17%) and a
year ago (7%).
The PNC Financial Services Group, Inc. (NYSE: PNC) is one of the
largest diversified financial services institutions in
the United States, organized
around its customers and communities for strong relationships and
local delivery of retail and business banking including a full
range of lending products; specialized services for corporations
and government entities, including corporate banking, real estate
finance and asset-based lending; wealth management and asset
management. For information about PNC, visit www.pnc.com.
Methodology
The PNC Economic Outlook survey was
conducted by telephone from 1/2/2025 to
2/4/2025, among small and mid-sized business owners/leaders
with self-reported revenue of $100,000 to $250
million. 500 interviews were conducted nationally. Sampling
error for the nationwide results is +/- 4.4% at the 95% confidence
level. The survey was conducted by Artemis Strategy Group
(www.ArtemisSG.com), a communications strategy research firm
specializing in brand positioning and policy issues. The firm
provides communications research and consulting to a range of
public and private sector clients. DISCLAIMER: This report was
prepared for general information purposes only and is not intended
as specific advice or recommendations. Any reliance upon this
information is solely and exclusively at your own risk. NOTE: The
sum of percentages may not add to the total due to rounding.
CONTACT:
Kristen Pillitteri
(412) 762-4550
media.relations@pnc.com
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SOURCE The PNC Financial Services Group, Inc.
