PROVIDENCE – Business conditions in Rhode Island improved in the second quarter of 2025, while cooling off nationally, according to Citizens Financial Group Inc.'s Business Conditions Index.
The index, which was released on July 29, reported Rhode Island’s Citizens Business Conditions Index increased 7.1% quarter over quarter and 0.3% year over year to 52.28, above the national index of 50.15. That mark fell 1.4% quarter-over-quarter and a 4% year-over-year, despite the U.S. economy showing notable resilience in the second quarter in the face of significant uncertainty, according to the report.
Corporate revenues remained resilient in the second quarter, Citizens said, even amid ongoing trade tensions and global uncertainty. According to proprietary data from the financial company, most sectors continued to see steady growth, with utilities showing a notable recovery following a sluggish performance earlier in the year.
“The second quarter was characterized by volatility as businesses navigated a dynamic macroeconomic and geopolitical environment,” said Eric Merlis, managing director and co-head of global markets at Citizens. “However, by and large, companies have adjusted to the new normal and client sentiment is feeling much stronger for the back half of the year.”
Economic conditions softened in some regions with international borders, such as the Northeast. However, macroeconomic indicators remained stable at the national level.
- New business applications were neutral to the index
- National employment data, as measured by initial jobless claims, remained healthy but was also neutral to the index
- The Institute for Supply Management [ISM] Services Index remained slightly expansionary, as consumers continue to show their resilience
- The ISM Manufacturing Index contracted, reflecting trade policy uncertainty
Overall, the second quarter index reveals remarkable stability in the business environment, according to the report.
“While there have been some tariff impacts on the margins, the economy weathered the volatility of the second quarter incredibly well,” Merlis added. “Companies appear poised for growth in the third quarter and beyond.”
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
