Citizens Business Conditions Index™ Remains Expansionary in Q3

10/30/2024

Citizens Business Conditions Index™ Remains Expansionary in Q3

Solid corporate revenue, resilient consumer trends support a steady business environment

PROVIDENCE, R.I. - The national Citizens Business Conditions Index™ (CBCI) moderated to 50.04 in the third quarter but remained in expansionary territory. The second consecutive reading above 50 indicates that business conditions continue to be solid.

Citizens' proprietary data showed a continuation of positive company revenue trends across most industries and geographies in the third quarter. Consumer trends also remained resilient against the backdrop of a strong labor market. These factors more than offset some idiosyncratic macro challenges during the period, including the impact of severe weather events and overall cautiousness in the business environment ahead of the upcoming U.S. election.

"Overall business conditions are strong and Citizens' middle market and mid-corporate clients continue to perform well," said Eric Merlis, managing director and co-head of global markets, Citizens. "As we approach the conclusion of election season, we are working closely with our clients to help them navigate the uncertainty and prepare for potential market and business implications."

The underlying components of the index reflected a mixed, but relatively steady, operating backdrop.

• The ISM non-manufacturing component remained expansionary, reflecting continued consumer resilience.
• The activity data of Citizens' Commercial Banking clients showed a continuation of solid revenue trends, providing an additional boost to the index.
• Employment trends, as measured by initial jobless claims, continue to be healthy but were neutral to the index.
• New business applications also had a neutral impact for the quarter, reflecting some cautiousness around new business investment ahead of the U.S. election.
• The ISM manufacturing component was contractionary for the eighth consecutive quarter.

Overall, the third quarter CBCI reveals a steady business environment that appears to have found balance.

"The third quarter index reading shows a business environment that has reached equilibrium," added Merlis. "Easing monetary policy should continue to support constructive business conditions, particularly as uncertainty in the U.S. political and regulatory environment likely abates in the coming quarters."

Citizens is a trusted strategic and financial adviser, consistently delivering clear and objective advice. The Citizens 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 visit the Citizens website.

About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation's oldest and largest financial institutions, with $219.7 billion in assets as of September 30, 2024. 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 full-service customer contact center and the convenience of approximately 3,100 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In 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 loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on X (formerly Twitter), LinkedIn or Facebook.

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