Mixed economic signals from the nation’s capital and state government and a stubborn inflation threat have left many Rhode Island business owners unsure how the local economy will fare this year.
That’s leaving many in a holding pattern, wary of major investments, according to this week’s cover story highlighting results of PBN’s Winter 2025 Business Survey.
The mixed results were similar to the summer iteration of the biannual survey of local business owners that PBN has done since 2008. Six months ago, preelection uncertainty had many business owners waiting for clearer signs on the national economy and its trickle-down effects statewide. Now, President Donald Trump’s campaign promises of tax cuts have some business owners hopeful, but others worry about the effect of raising tariffs on a host of imported goods to pay for them.
And President Trump’s short-lived threat of a federal aid freeze only added to the uncertainty for many businesses.
Also muddying the local economic picture: rising business costs and a looming state budget deficit of $250 million.
The data shows stagnant business activity, with the percentage of companies reporting quarterly gains dipping to its lowest level in the survey’s history.
Concern about health care costs is again rising after a dip last summer. Meanwhile, a strong majority continue to call for government to make it less costly to do business.
The silver lining, as it historically has been, is the self-confidence of business owners. Despite the uncertainties, more than half believe their business will improve in the coming year.