Iselin-based Provident Bank said Jan. 5 that business owners are poised to accelerate operations in 2026, a decided shift from their “wait and see” outlook from last year, according to its annual Economic Outlook Survey.
The survey found that business owners, mindful of uncertainty regarding Trump administration tariff policy and inflation, are looking past the headlines. More than 50% believe the U.S. economy will be in a better position this year and over 60% expect their own business to be in better shape. This translates into increases in capital spending, hiring and faster adoption of AI.
The survey was conducted by Pollfish, a market research provider, on behalf of Provident Bank. The findings are based on responses from 1,000 business owners and senior executives in the U.S. working for companies with more than $1 million in annual revenue.
“This year’s data shows a clear transition from the passive optimism we saw last year to active investment this year,” said Anthony Labozzetta, president and CEO, Provident Bank. “Business owners are no longer just hopeful about the future; they are funding it. We are seeing an uptick in plans for capital expenditures, hiring and technology adoption, signaling that companies are positioning themselves to accelerate in 2026.”
The survey data highlights include:
- Investment spikes: 70% of businesses plan to increase capital expenditures in 2026, up from 68% last year. High-conviction spending is on the rise, with the number of businesses planning a “significant increase” in spending jumping to 19% this year from 11% in 2025.
- Generational divide: Younger leaders are driving the nation’s optimism, with 44% of Gen Z owners expecting their business to be in “much better shape” next year, compared with just 14.5% of Baby Boomers. This divide extends to strategy: while Gen Z and Millennials are focused on aggressive expansion and navigating global trade tensions, Gen X and Boomers remain the stabilizing force, prioritizing operational efficiency and cost containment in the face of inflation.
- Hiring heats up: The workforce is set for expansion, with 57% of businesses planning to increase hiring, up from 53% last year. Hiring plans have more than doubled, with 17% of owners planning a “significant increase” in staff, compared with 8% a year ago.
- AI becomes standard: Engagement with AI has surged, with 58% of businesses either already using or planning to adopt AI tools in 2026, up from 41% in last year’s survey.
While the outlook is positive, business leaders remain transparent about the challenges they face. Inflation remains the top concern for business owners, though the intensity of that concern has cooled, dropping to 49% this year from 60% in 2025. Meanwhile, uncertainty regarding trade and policy has risen, with 37% of respondents citing political and policy uncertainty as a key challenge, up from 29% in 2025.
“Despite the headwinds of inflation and uncertainty, the dominant story for 2026 will be resilience and action,” added Mr. Labozzetta. “Businesses are adapting, modernizing and expanding.”
