PNC Survey: Business Optimism Peaks Amid Economic Recovery

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PNC’s latest survey of small and mid-sized businesses reveals record-high optimism for economic conditions over the next six months. The survey, conducted until February 1st, shows a surge in positivity, with 55% highly optimistic about the national economy, up from 34% last fall. Global economic optimism also rose to 40%, from 25% in the previous survey. Moreover, nearly two-thirds (63%) express high optimism about their local economy.

Business owners are equally bullish about their own ventures, with 79% reporting strong optimism, consistent with last fall’s figures. Notably, the construction sector leads in optimism, with 85% anticipating better times ahead for their businesses.

Gus Faucher, PNC’s chief economist, notes the positive outlook amidst a robust economy but warns of remaining risks. Inflation pressures seem to ease, with fewer businesses (47%) planning price hikes in the next six months. Additionally, expectations of supplier price increases have decreased to 40%.

While 21% of businesses plan to increase full-time workforce, hiring challenges persist, with the lack of overall applicants remaining a top concern. Faucher emphasizes the evolving nature of hiring challenges and ongoing pressure on employers due to rising hiring and compensation costs.