PFS Provident Financial Services Inc

Provident Bank, a leading New Jersey-based financial institution, released the results of its 2025 Economic Outlook survey showcasing widespread optimism and confidence from 1,000 business owners and leaders on both the U.S. economic landscape and within their own companies. Specifically, businesses are increasing capital spending, investing in technology (specifically AI), and pointing to a modest increase in hiring. However, when asked about challenges heading into 2025, respondents raised concerns around inflation, tariffs, rising consumer and national debt, employee wages, and more.

Optimism heading into 2025According to respondents, businesses are optimistic about the U.S. economy and business environment for 2025.

• 60% of respondents believe the U.S. economy will be in much better or somewhat better shape one year from now.
• 63% of respondents believe their own business will be in much better or somewhat better shape.
• 68% of respondents anticipate a slight or significant increase in capital spending in 2025.
• Over 50% of respondents anticipate a slight or significant increase in hiring for 2025, while 36% predict no changes in their hiring plans.
• 69% of respondents are planning to adopt AI tools in their business within the next year, with 29% ready to implement them and 40% expressing interest but seeking to learn more about AI first.

Challenges remain in the backgroundAt the same time, the data below highlights the need for leaders to prepare carefully to navigate the uncertainties that come with change.

• When asked about challenges to the U.S. economy, the top three shared by respondents are inflationary pressures (60%), trade tensions and tariffs (51%), and rising consumer and national debt (44%).
• Interestingly, while inflationary pressures are top-of-mind, executives are seeing minimal impact from the Federal Reserve's interest rate cuts. When asked if the Fed rate cuts have positively impacted their business, 38% were unsure, and 30% said that they haven’t.
• For business owners, the top challenges include employee benefits and costs (46%), inflation, including the rising costs of energy, fuel, goods, and services (46%), and rising wages (39%).

"Our survey of business owners and senior executives reveals a strong sense of optimism for 2025, with a focus on growth and strategic expansion,” said Anthony Labozzetta, President and CEO, Provident Bank. “At Provident, we’re committed to being a trusted partner for our customers, no matter what the economic environment, empowering them with tailored financial solutions to help leverage opportunities and navigate challenges in both the macroeconomic landscape and growth plans within their own business."

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. To access the full findings, please contact Vested directly: providentbank@fullyvested.com.

About Provident BankFounded 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 September 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.

Media Contact:Provident BankKeith Buscio – keith.buscio@provident.bankVested – providentbank@fullyvested.com