Citizens Business Conditions Index™ Rebounds Slightly in Q3
30 Outubro 2023 - 10:01AM
Business Wire
Strong labor market, resilient consumer drive
return to modest growth
A strong labor market and resilient consumer trends supported a
slight improvement in economic conditions during the third quarter
as inflation showed some signs of abating, according to the
national Citizens Business Conditions Index™ (CBCI), released
today. After falling below 50 in the second quarter, the index rose
to 50.7 in the third quarter, signaling a return to modest
growth.
New business applications leveled off during the quarter, but
operating conditions for small businesses generally improved as
interest rates stabilized following the Federal Reserve’s latest
rate hike in July. Citizens’ proprietary data on client revenue was
stronger across most industries during the third quarter. Consumer
Services and Healthcare remained among the top sectors while the
manufacturing industry continued to contract, though at a slower
rate.
“The U.S. economy was resilient in the third quarter as
inflation showed signs of easing despite continued strength in the
labor market,” said Eric Merlis, managing director and co-head of
global markets, Citizens. “While the operating environment remains
fragile, Citizens’ middle market and mid-corporate clients continue
to perform reasonably well.”
The underlying components of the index showed a slight rebound
in the business environment during the third quarter. Three of the
five components provided a boost to the Index level, while one was
neutral and one weighed on the reading.
- Employment trends, which are measured by initial jobless claims
as an Index component, strengthened throughout the quarter,
providing a tailwind for the Index.
- The ISM non-manufacturing component grew as demand for services
remained high and inflation eased.
- The activity data of Citizens’ commercial banking clients was
relatively strong across regions, suggesting that conditions at
many middle-market and mid-corporate businesses remain
positive.
- New business applications held fairly steady.
- The ISM manufacturing index indicated that the sector continued
to contract but did so at a slower rate as the reading improved
relative to recent levels.
The third-quarter CBCI revealed a business environment that
continues to grapple with the impact of higher rates, but one that
has benefited more recently from signs that inflation may be
moderating. While operating conditions remain mixed, the economy
exited the quarter with momentum.
“The third-quarter CBCI shows a business environment that
improved over the last quarter as initial jobless claims declined,
consumer trends remained resilient and inflation eased,” said
Merlis. “From here, the focus will continue to be on policy-makers
as they navigate a complex economic and geopolitical environment
and attempt to walk the fine line toward a soft landing.”
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About Citizens Financial Group,
Inc. Citizens Financial Group, Inc. is one of the
nation’s oldest and largest financial institutions, with $225.3
billion in assets as of September 30, 2023. 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
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convenience of approximately 3,300 ATMs and approximately 1,100
branches in 14 states and the District of Columbia. Consumer
Banking products and services include a full range of banking,
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Frank Quaratiello 617.543.5810
frank.quaratiello@citizensbank.com
Citizens Financial (NYSE:CFG)
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