PROVIDENCE – Small- and middle-market businesses are heading into 2026 with growing confidence and plans to invest, hire and expand, according to a new survey from Citizens Financial Group Inc. that shows a sharp uptick in optimism and near-term revenue expectations.
The Citizens Q1 2026 Business Pulse survey found that 68% of middle-market companies, defined as those with more than $5 million in annual revenue, are confident in the economy, while 86% expect revenue to rise in the first quarter.
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Among smaller businesses, 64% anticipate revenue growth over the same period.
The improved outlook is translating into spending plans. Sixty percent of businesses surveyed said they intend to deploy more capital in the first quarter to improve efficiency and drive additional revenue.
Of those, nearly two-thirds plan to use or apply for a credit card, and 47% expect to request a credit limit increase, according to the survey.
Hiring is also back on the agenda. Forty-one percent of small businesses said they plan to increase headcount in the first quarter, while fewer than 3% expect to cut full-time staff.
Mark Valentino, head of business banking at Citizens, says business owners are adapting to a challenging environment while continuing to push forward.
“Even in the face of challenging conditions, our clients continue to demonstrate remarkable creativity, resilience and determination,” Valentino said. “The surge in optimism suggests the entrepreneurial engine is not just surviving; it’s accelerating.”
The survey pointed to talent and inflation as ongoing concerns but also suggested many owners now view them as manageable constraints rather than growth blockers.
“Small and medium-sized businesses have adjusted to a new normal,” Valentino said. “Talent is a concern and so is inflation pressure, but we believe that strong partnerships can help owners take advantage of opportunities.”
The Citizens Q1 2026 Business Pulse was conducted in November 2025 and surveyed 500 U.S. business principals at companies with up to 1,000 employees, the bank said.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
