Business owners optimistic over economy, PNC survey shows

According to a new survey from PNC, the majority of small- and mid-sized business owners are optimistic about the national economy and nearly four out of five are optimistic about their own business.

The survey, which concluded Feb. 1, found that 55 percent of respondents were highly optimistic about the national economy, up from 34 percent last fall, and 26 percent a year ago. The survey found that 40 percent were optimistic about the global economy, and 63 percent were highly optimistic about their local economy.

Additionally, the survey found that business owners are optimistic about their own businesses. Nearly eight in 10 (79 percent) reported being highly optimistic about their own prospects, up from 60 percent a year ago. Business owners in construction were most optimistic with 85 percent anticipating better times ahead. And businesses making between $20 million and $250 million in revenue shows the most optimism, while those making smaller revenues ($100,000 to less than $3 million) showing the least.

“Business leaders see their own businesses continuing to do well in a strong and improving economy, whereas previously they had been telling us they are doing well despite concerns about the overall economy,” Gus Faucher, PNC chief economist, said. “However, risks remain. PNC expects near-term economic growth and we will be looking closely at employment data, inflation and when and how the Federal Reserve makes decisions around interest rates.”

Business owners expect inflation pressures to lessen as well. Fewer than half (47 percent) expect to increase prices in the next six months, down from 55 percent last fall; and only four in 10 (40 percent) expect their suppliers to increase prices in the next six months.

PNC said business owner optimism about economic conditions over the next six months has reached a 22-year high as the fears of a looming recession abate.

“Supply chain issues, which were a major contributor to the inflation spike late in 2021, and into last year, have largely dissipated,” Faucher said. “Yet employers remain under pressure due to increasing costs for hiring and compensation. As the exceptionally tight labor market loosens somewhat this year, we may see those pressures lessening.”

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