Citizens Q3 2026 Business Pulse: Half of Small Business Owners See Growth Ahead Despite Concerns About the Economy

Key Points

• Optimism continues to rise: Half of small business owners (50%) expect revenue to grow in the next three months, the highest level in three consecutive quarters of the survey.
• Confidence in the U.S. economy fell to just 24% in Q3, down from 36% in Q2 2026
• Rising costs and inflation remain the No. 1 business challenge. Fifty-one percent of respondents cite them as concerning, outpacing economic uncertainty (43%) and finding and keeping customers (39%).

PROVIDENCE, R.I.--(BUSINESS WIRE)--U.S. small business owners head into the second half of 2026 with growing confidence in their own prospects, even as faith in the broader economy continues to drop.

The Citizens Q3 2026 Business Pulse survey found that half of small business owners (50%) expect their revenue to increase over the next three months, the highest level of optimism recorded this year. Yet that optimism sharply contrasts how owners view the macroeconomic backdrop: just 24% say they are extremely or very confident in the U.S. economy, down from 36% in Q2 2026.

“Small business owners are proving they can hold their own, even when the world around them is full of uncertainty,” said Mark Valentino, Head of Business Banking at Citizens. “The data is not showing a contradiction, but an opportunity. Those who forge ahead and continue to be nimble and innovative will separate themselves from the competition.”

Rising costs remain the defining external pressure. More than half of respondents (51%) cite inflation and cost management as their biggest business challenge, outpacing economic uncertainty (43%) and customer acquisition (39%).

In the face of these external pressures, business owners are not making dramatic moves. Hiring plans remain largely unchanged, with 64% of respondents planning to keep full-time headcount the same over the next three months and just 18% planning to increase full-time staff. Credit appetite tells a similar story: 67% expect no real change in their use of loans, lines of credit or other financial resources. Across the board, owners appear focused on running their businesses efficiently and continuing to chart the course, rather than overextending in either direction.

Methodology

The Citizens Q3 Business Pulse Survey was conducted between June 1 and June 18, 2026, surveying 500 business principals (i.e., owner, founder, partner, CEO, president, etc.). Results are weighted by company size to reflect the U.S. small business population. The survey is conducted quarterly to measure near‑term expectations for revenue, hiring, spending, credit usage and key business challenges across the United States.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $227.9 billion in assets as of March 31, 2026. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail, private banking, wealth management and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,000 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. Consumer Banking includes Citizens Private Bank and Private Wealth, which integrate banking services and wealth management solutions to serve high- and ultra-high-net-worth individuals and families, as well as investors, entrepreneurs and businesses. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on X, LinkedIn or Facebook.