Businesses are optimistic about 2025, planning increased investments in capital spending, artificial intelligence, and new talent, according to the Provident Bank 2025 Economic Outlook Survey. Concerns remain, however, regarding challenges over inflation, tariffs, debt, and employee costs.
Optimism for 2025
Businesses are entering the year with a positive outlook on the economy and their growth prospects:
- 60% expect the U.S. economy to improve significantly or somewhat by year-end.
- 63% predict better conditions for their own businesses.
- 68% plan to increase capital spending, signaling confidence in expansion and innovation.
- Over 50% anticipate an increase in hiring, while 36% foresee no changes.
- 69% are exploring AI integration, with 29% ready to implement AI tools and 40% expressing interest but seeking further education on the technology.
Economic and Business Challenges
Despite optimism, respondents recognize the need to navigate persistent challenges in the economic environment:
- Inflation (60%), trade tensions and tariffs (51%), and rising consumer/national debt (44%) are top concerns for the U.S. economy.
- Federal Reserve interest rate cuts have had limited impact, with 38% unsure of their effect and 30% seeing no benefit.
- For individual businesses, the biggest challenges are employee benefits and costs (46%), inflationary pressures such as rising energy and goods costs (46%), and increasing wages (39%).
Executive Perspective
Anthony Labozzetta, President and CEO of Provident Bank, shared insights on the findings:
“Our survey of business owners and senior executives reveals a strong sense of optimism for 2025, with a focus on growth and strategic expansion. At Provident, we are committed to being a trusted partner for our customers, providing tailored financial solutions that help them seize opportunities and navigate challenges in the evolving economic landscape.”
About the Survey
The survey was conducted by Pollfish, a market research provider, on behalf of Provident Bank. It is based on responses from 1,000 U.S. business owners and senior executives at companies with annual revenues exceeding $1 million.
To access the full report, contact 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 $24.04 billion as of Sept. 30, 2024, 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 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.