While trade tensions and a shifting rate environment pressured U.S. business sentiment in the third quarter, key economic signs remain positive and companies continue to post revenue growth, according to the Citizens Business Conditions Index™. In the latest report released by Citizens Commercial Banking, the index dropped from 61.2 to 60.2 but remained well above 50, showing continued confidence.
“The U.S. economy continues to show its resiliency, powered by consumers who continue to ignore the increasing geopolitical noise as they head into the traditional holiday shopping season,” said Tony Bedikian, head of Global Markets for Citizens Commercial Banking. “The slight dip in the Index seems to have been caused by continued trade uncertainty, but even that was not enough to make much of a dent in the indicators overall. While there seems to be growing concern about next year, it also seems as if economists have been saying that every year for at least the last several years.”
The Index is derived from a number of underlying components, most of which remained strong during the third quarter.
- While the Manufacturing and Non-Manufacturing Purchasing Managers’ Indexes (PMIs) from the Institute of Supply Management (ISM) were down from second-quarter readings, the ISM Non-Manufacturing PMI remained in expansion territory.
- The ISM Manufacturing PMI declined enough to signal contraction in the sector with the ongoing trade war between the U.S. and China a likely key driver of uncertainty for manufacturers.
- National unemployment figures decreased during the quarter and, while wage growth slowed from the previous quarter, it remained at a healthy level.
- Proprietary measures of business activity among Citizens Commercial Banking’s more than 7,000 clients across the United States remained strong.
The Index draws from public information and proprietary corporate data to establish a unique view of business conditions across the country. An index greater than 50 indicates an expansionary trend and points to improved business growth for the next quarter.
Citizens is a trusted strategic and financial adviser, consistently delivering clear and objective advice. The Citizens Commercial Banking approach puts clients first by offering great ideas combined with thorough market knowledge and excellent execution, to help our clients enhance their business and reach their potential. For more information, please see the Index here or visit the Citizens Commercial Banking website.
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $164.4 billion in assets as of September 30, 2019. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail 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 24/7 customer contact center and the convenience of approximately 2,900 ATMs and approximately 1,100 branches in 11 states in the New England, Mid-Atlantic and Midwest regions. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers corporate, institutional and not-for-profit clients a full range of wholesale banking products and services, including lending and deposits, capital markets, treasury services, foreign exchange and interest rate products, and asset finance. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.