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While business owners are optimistic about the new year, they’re also concerned about the uncertainties of what lies ahead. 

That’s according to Provident Bank‘s 2025 Economic Outlook survey, released Jan. 7. 

Conducted by market researcher Pollfish on behalf of the Iselin-based financial institution, the survey took the pulse of 1,000 U.S. business owners and senior executives working for companies with more than $1 million in annual revenue. 

The poll found that, in general, businesses are increasing capital spending, investing in technology such as AI and are planning a slight increase in hiring this year.  

Respondents’ top concerns for 2025 included inflation, tariffs, rising consumer and national debt, and employee wages. 

“Our survey of business owners and senior executives reveals a strong sense of optimism for 2025, with a focus on growth and strategic expansion,” Provident President and CEO Anthony Labozzetta said in a statement. 

Some topline findings of Provident Bank‘s 2025 Economic Outlook survey: 

• 60% of respondents believe the U.S. economy will be in much better or somewhat better shape a year from now. 
• 63% believe their business will be in much better or somewhat better shape. 
• 68% anticipate a slight or significant increase in capital spending in 2025. 
• More than 50% of respondents anticipate a slight or significant increase in hiring for 2025, while 36% predict no changes in their hiring plans. 
• 69% are planning to adopt AI tools in their business within the next year, with 29% ready to implement them and 40% expressing interest but wanting to learn more about AI first. 

Challenges ahead 

Survey takers were also asked about the Federal Reserve’s rate cuts. The Fed most recently lowered interest rates by a quarter-point at its Dec. 18 meeting. When asked if the changes have positively affected their business, 38% were unsure, and 30% said they haven’t. 

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