Business Owners Optimistic on National and Local Economy

Rhea-AI Summary

PNC's latest semi-annual survey of small and mid-sized business owners reveals sustained optimism across multiple economic dimensions. 78% of business owners are optimistic about their own business prospects, near the 23-year survey high of 79%. The national economic outlook remains strong with 50% of owners expressing optimism, just below the survey-high of 56%, while 56% are optimistic about their local economy.

Key findings show 65% of businesses expect increasing sales in the next six months, with 57% anticipating higher profits. However, inflation remains a significant concern, with 43% of owners extremely concerned. Notable trends include: 53% planning price increases, reduced hiring expectations at 15%, record-high inventory increase predictions at 42%, and 26% forecasting lower cash reserves next year.

Positive

• 78% business optimism rate near 23-year high
• 65% expect sales increase in next 6 months
• 57% anticipate profit growth
• 42% predict inventory increase (survey high)
• Higher revenue businesses show stronger optimism and sales expectations

Negative

• 26% expect declining cash reserves (up from 7% year ago)
• Only 15% plan to hire (down from 21% year ago)
• 43% extremely concerned about inflation
• Local economy optimism dropped to 56% from 63% year ago
• 53% planning price increases due to cost pressures

• 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 23^rd 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.

FAQ

What percentage of business owners are optimistic about their business prospects in PNC's 2025 survey?

78% of business owners are optimistic about their business prospects, nearly matching the 23-year survey high of 79%.

How many PNC-surveyed businesses plan to increase prices in the next six months?

53% of businesses plan to increase prices, down from 61% last fall, with 20% planning increases of 5% or more.

What are the hiring expectations for businesses according to PNC's 2025 survey?

Only 15% of businesses expect to increase full-time employees in the next six months, down from 21% a year ago.

How has inflation concern changed in PNC's latest business survey?

43% of businesses are extremely concerned about inflation, unchanged from six months ago but more than double from last spring's 20%.

What percentage of businesses in PNC's survey expect their cash reserves to decrease?

26% of businesses expect lower cash reserves next year, up significantly from 17% last fall and 7% a year ago.