- The Citizens Business Conditions Index™ (CBCI) remained steady at 50.9 in Q1 2025, slightly down from 51.0 in Q4 2024.
- Strong corporate revenue trends spearheaded positive momentum, with Energy and Utilities as notable exceptions.
- Macroeconomic uncertainty hints at potential cooling in business conditions.
The national Citizens Business Conditions Index™ (CBCI) held steady at 50.9 in the first quarter of 2025, a marginal change from the previous quarter's 51.0. This indicates sustained positive business conditions despite increasing macroeconomic uncertainties. Notably, solid corporate revenue growth across various industries, excluding Energy and Utilities, played a crucial role in maintaining this stability.
Eric Merlis, Managing Director and Co-Head of Global Markets at Citizens, highlighted the optimism of business leaders entering 2025, which significantly bolstered the economic environment in Q1. However, the outlook for the remainder of the year is blurred by economic uncertainties.
Macroeconomic factors offered a neutral impact on the index nationally, although signs of a slowdown were apparent. The neutrality of new business applications reflects cautious sentiment, while employment data, indicated by initial jobless claims, remained unchanged. Some states, like Delaware, experienced significant impacts from federal restructuring.
Meanwhile, the ISM Manufacturing and ISM Services indexes were expansionary throughout the quarter, albeit with cooling sentiment by March due to growing macroeconomic concerns. The CBCI report suggests a resilient yet cautious business environment facing headwinds from geopolitical pressures and policy changes.
Citizens Financial Group, Inc. (CFG, Financial), headquartered in Providence, Rhode Island, continues to serve as a strategic advisor in the evolving market landscape, helping clients navigate challenges through expert guidance and support. With assets totaling $220.1 billion as of March 31, 2025, Citizens persists in delivering tailored financial solutions across retail and commercial banking sectors.
