Provident Bank Mid-Year Survey Shows Business Owners Balancing Tariff Concerns with Economic Optimism

Rhea-AI Summary

Provident Bank's Mid-Year Business Outlook Survey reveals a complex economic landscape where business owners maintain optimism while grappling with tariff concerns. The survey of 1,000 business leaders shows 60% expect economic growth in late 2025, despite 55% viewing tariffs negatively. Over 70% express concern about tariff impacts, though 80% report minimal current effects. Business owners are responding strategically: 41.68% plan to delay capital expenditures, 37% expect to pass tariff costs to customers, and about 30% plan to halt hiring. The survey also found that 32.55% have adjusted inventory levels, while 31.69% are still evaluating. Notably, 45% of respondents favor eliminating tariffs completely, while 35% support keeping them in some capacity.

Positive

• 60% of businesses expect economic growth in the next six months
• 80% of businesses report minimal to no impact from tariffs so far
• 50% of companies maintain unchanged hiring plans despite concerns
• Survey demonstrates businesses are adapting strategically to economic challenges

Negative

• Over 70% of respondents are very to moderately concerned about tariff impacts
• Over 50% believe tariffs are making the United States weaker
• 41.68% of businesses are planning to delay major capital expenditures
• 37% of businesses expect to pass tariff costs to customers, potentially affecting sales

Key Findings Reveal Business Owners' Strategic Responses to Economic Uncertainty, Including Careful Inventory Management and Delayed Capital Expenditures

ISELIN, N.J., June 03, 2025 (GLOBE NEWSWIRE) -- Provident Bank, a leading New Jersey-based financial institution, has released the results of its Mid-Year Business Outlook Survey, taking stock of business owner sentiment as they navigate a nuanced macroeconomic environment dominated by looming tariffs. This year’s survey revealed positivity around the economy, with lingering concerns around the impact of tariffs and businesses making short-term decisions that reflect this uncertainty.

Business owners believe the economy will grow, yet there is mixed sentiment around tariffs.
Overall, business owners believe the economy will grow in the back half of 2025, yet their view of tariffs is less positive. While the full effect of tariffs has yet to be felt, general sentiment is that they aren’t good for the economy.

• Over 60% of businesses believe the economy will grow over the next six months. Yet, there is a clear level of dissatisfaction with the ongoing tariff policies, as over 55% of respondents believe they’re having a negative impact on the United States.
• Over 70% of respondents are “very” to “moderately” concerned about the impact of tariffs on their businesses. However, the impact to date has been minimal, with over 80% of businesses saying there has been “somewhat of an impact” or “none”.
• When looking at tariffs across the board, over 35% said to keep tariffs in some capacity, 45% said to eliminate them altogether, and just under 20% said to keep them as proposed. Over 50% of respondents said tariffs are making the United States weaker.
  

Businesses anticipate tariff consequences, though the full effect is yet to be seen.
Most business owners expect tariffs to affect their revenue, with many using careful inventory management and sales promotions to lessen the potential effect. Regarding future planning, respondents noted delaying capital expenditures, and most reported no change in hiring practices.

• Over half of respondents believe that tariffs will, in some capacity, decrease their business’ revenue.
• Responses to inventory adjustments were closely split. 32.55% noted that they have adjusted their inventory levels, and 31.69% are still evaluating.
• Regarding hiring, just under 30% are planning to halt hiring, while nearly 50% say that their hiring plans remain unchanged.
• Most business owners aren’t taking immediate action on sales promotions to account for weaker demand, with 34% taking no action and just over 30% still evaluating.
• The slight majority (41.68%) of respondents are planning to delay major capital expenditures. In addition, just over 37% of businesses expect to pass the cost of tariffs onto their customers, and just under 30% expect to absorb the cost.
  

“Despite business owners voicing concerns about tariffs, our survey demonstrates a positive growth outlook in the near future," stated Bill Fink, Executive Vice President, Chief Lending Officer at Provident Bank. "We’re observing businesses strategically adapting to this environment by proactively managing inventory and planning capital expenditures. At Provident Bank, we deeply understand our clients' businesses through close partnerships, which allows us to effectively address their unique challenges. We are dedicated to providing the financial support and resources they need to thrive in today's dynamic lending landscape, leveraging our in-depth knowledge of their operations."

The survey was conducted by Pollfish, a market research provider, on behalf of Provident Bank. The findings are based on responses from 1,000 business owners and senior executives in the U.S. working for companies with over $1M in annual revenue. To access the full findings, please contact Provident Bank’s Public Relations Agency, Vested, at providentbank@fullyvested.com.

About Provident Bank
Founded in Jersey City in 1839, Provident Bank is the oldest community-focused financial institution based in New Jersey and is the wholly owned subsidiary of Provident Financial Services, Inc. (NYSE:PFS). With assets of $24.22 billion as of March 31, 2025, Provident Bank offers a wide range of customized financial solutions for businesses and consumers with an exceptional customer experience delivered through its convenient network of more than 140 branches across New Jersey and parts of New York and Pennsylvania, via mobile and online banking, and from its customer contact center. The bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company, and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc. To learn more about Provident Bank, go to www.provident.bank or call our customer contact center at 800.448.7768.

Media Contact:
Keith Buscio - Keith.Buscio@provident.bank
Vested - Providentbank@fullyvested.com

FAQ

What are the key findings of Provident Bank's (PFS) 2025 Mid-Year Business Survey?

The survey found that 60% of businesses expect economic growth, though 70% are concerned about tariffs. 41.68% plan to delay capital expenditures, 37% expect to pass tariff costs to customers, and 32.55% have adjusted inventory levels.

How are businesses responding to tariff concerns according to Provident Bank's survey?

Businesses are responding through careful inventory management, delaying capital expenditures, and some are planning to halt hiring. 37% expect to pass costs to customers, while 30% plan to absorb the costs.

What percentage of businesses in the PFS survey support or oppose current tariffs?

45% of surveyed businesses want to eliminate tariffs altogether, 35% support keeping tariffs in some capacity, and just under 20% want to keep them as proposed.

How is the tariff situation affecting hiring plans according to Provident Bank's survey?

According to the survey, nearly 50% of businesses say their hiring plans remain unchanged, while just under 30% are planning to halt hiring due to tariff concerns.

What is the current impact of tariffs on businesses according to the PFS survey?

Over 80% of businesses report either somewhat of an impact or no impact from tariffs currently, though over 50% believe tariffs will decrease their business revenue in the future.