During the fourth quarter of 2024, the national Citizens Business Conditions Index rose to 51, meaning business conditions improved modestly.
“Business conditions continued to improve in the fourth quarter, and the U.S. economy is entering 2025 with some momentum,” Eric Merlis, Citizens Financial Group managing director and co-head of global markets, said. “While severe weather events may continue to present idiosyncratic headwinds in the near-term, overall labor and consumer trends remain healthy and our clients are optimistic about the outlook for business in the year ahead.”
During the fourth quarter, the business environment began to benefit from falling interest rates and moderating inflation concerns.
The index also found that Citizens’ Commercial Banking clients in multiple industries and geographic area experienced robust corporate revenue trends. Employment trends and new business applications had a neutral impact. Geographic challenges affected the index in certain parts of the country.
The service sector saw the ISM non-manufacturing component expand while the ISM manufacturing component remained contracted. The ISM manufacturing index, conducted by the Institute for Supply Management, is a seasonally adjusted, composite index that gives equal weight to production, employment, supplier deliveries, new orders, and inventories.
Rhode Island-based Citizens Financial Group is one of the nation’s oldest and largest financial institutions.