Business Owners Optimistic on National and Local Economy

Core Insights - The PNC survey indicates sustained optimism among small and mid-sized business owners regarding their own businesses and the broader economy, with 78% expressing optimism for their own prospects, close to the survey high of 79% recorded a year ago [1][8] Economic Outlook - 50% of business owners are optimistic about the national economy, slightly below the survey-high of 56% from last fall, while 56% are optimistic about their local economy, down from 63% a year ago [2][8] - The U.S. economy is described as remaining in solid shape, supported by strong demand and a favorable labor market [3] Revenue and Profit Expectations - Higher revenue businesses show greater optimism about both the national and local economies, with expectations for increasing sales and profits in the coming months [4][5] - 65% of business owners expect increasing sales in the next six months, unchanged from fall and up from 55% last spring; 57% expect profit increases, matching last fall's level [6] Sector-Specific Insights - Manufacturing and construction sectors are more likely to anticipate sales increases, while service businesses are less optimistic [7] Inflation and Pricing Concerns - Inflation remains a primary concern, with 43% of business owners extremely concerned, unchanged from six months ago [9] - 53% plan to increase prices in the next six months, down from 61% last fall; among those, 20% plan to raise prices by 5% or more, significantly lower than the 38% from last fall [9] Employment and Inventory Trends - Only 15% of business owners expect to increase full-time employees in the next six months, similar to last fall and down from 21% a year ago [9] - 42% predict an increase in inventory, a survey high, consistent with last fall and up from 34% a year ago [9] Cash Reserves Forecast - 26% of business owners expect their cash reserves to decrease next year, a significant increase from 17% last fall and 7% a year ago [9]