Citizens Business Condition Index™ is back in Q1 – Citizens Bank

04/26/2023

Citizen’s Business Conditions Index™ returns in Q1

Respondents are concerned about a decline in income, but they see the increase.

Supply, RI–(BUSINESS WIRE)–Citizens announced today that the National Citizens Business Conditions Index (CBCI) rose to 53.9 in the first quarter, reflecting continued strength in the labor market, more new businesses and trends in corporate earnings. The index dipped below 50 in the fourth quarter of last year and rebounded in the first quarter, indicating a return to positive business conditions.

The labor market remained strong despite a sharp hike by the Federal Reserve aimed at slowing the economy to curb inflation. Consumer Services and Healthcare were among the top sectors to grow as industries were able to pass on growing spending to customers in the first quarter, according to Citizen Proprietary Data. The manufacturing sector has slowed down as high borrowing costs have impacted expansion by limiting capital expenditures.

” of US The economy picked up in the first quarter and despite disruptions in the financial sector, there are a number of positive signs going forward such as improving inflation measures and still strong labor force numbers,” said Eric Merlis, Managing Director and Co-Head of Global Markets. , citizens. Policymakers are trying to thread the needle amid fears of a deep recession, but companies that have faced the pandemic and recent headwinds have proven resilient.

Relief from inflation

Major components of the index showed volatile changes in the business environment. Three of the five classes raised the index, one was neutral and one weighed reading.

• Data on ownership activity of Citizens Commercial Bank customers, a key component of the index, was strongest across regions, suggesting that conditions in middle market and medium corporate businesses remained positive.

• As consumers spent more on services and companies in these sectors were able to pass on any additional costs, the non-manufacturing sector of ISM grew.

• New business applications have been added, helping to boost the index.

• The trend in employment, measured as part of the index of initial jobless claims, was flat in the quarter, but overall job gains were surprisingly high despite a number of notable corporate layoff announcements nationwide.

• The ISM manufacturing index declined as the sector is more vulnerable to rising interest rates.

The mix of trends included a quarter in which demand for goods was weak, while demand for services was steady amid broad employment stability.

The first quarter CBCI showed a business environment that continues to adapt to the Fed’s annual rate hike campaign. The strong labor market continues to have a stabilizing effect as business conditions seek a new post-tightening normal.

“The first quarter showed CBCI’s business environment moderated as interest rate hikes worked to curb inflation,” Merlis said. “The still strong labor market continued to be a source of support during the quarter.”

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About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions. 222.3 billion dollars In properties from March 31, 2023. Headquarters at Providence, Rhode IslandCitizens offers a wide range of retail and commercial banking products and services to individuals, small businesses, mid-market companies, large corporations and institutions. Citizens helps customers reach their potential by listening to and understanding their needs to provide tailored advice, ideas and solutions. In Consumer Banking, Citizens offers mobile and online banking, a full-service customer contact center and approximately 3,400 ATMs and more than 1,100 branches in 14 states and District of Columbia. Consumer banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. Within 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 credit syndication, corporate finance, mergers and acquisitions. and debt and equity capital market capabilities. More information is available at www.citizensbank.com or visit us at TwitterLinkedIn or Facebook.

Check out the source version at businesswire.com: https://www.businesswire.com/news/home/20230426005243/am/

Frank Quaratiello

617.543.5810

frank.quaratiello@citizensbank.com

Source: Citizens Financial Group, Inc.