Provident Bank’s Mid-Year Business Outlook Survey of more than 1,000 business owners or big business executives showed two clear findings:
- There is a positive view of the economy: More than 60% expect the economy to grow over the next six months;
- There is a negative view of tariffs: More than 55% see them having a negative impact on the country — and nearly have feel they will decrease their revenue.
The questions around tariffs dominated the findings.
More than 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.”
But 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.
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, but most reported no change in hiring practices.
Chief Lending Officer Bill Fink said the biggest takeaway is optimism.
“Despite business owners voicing concerns about tariffs, our survey demonstrates a positive growth outlook in the near future,” he said. “We’re observing businesses strategically adapting to this environment by proactively managing inventory and planning capital expenditures.”
Fink stressed Provident is ready to help.
“At Provident Bank, we deeply understand our clients’ businesses through close partnerships, which allows us to effectively address their unique challenges,” he said. “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.
