Provident Bank Annual Economic Outlook Survey Reveals Shift Towards Active Investment in 2026
ISELIN, N.J., Jan. 06, 2026 (GLOBE NEWSWIRE) -- Provident Bank, New Jersey's preeminent financial institution, has released the results of its annual Economic Outlook Survey, showcasing a pivotal shift in business outlook. As the uncertainty of the previous year recedes, business leaders are increasingly optimistic about their economic future and are poised to embark on significant investments in 2026.
Key Survey Findings Reflect Growing Business Confidence
The survey indicates that many business owners are adopting a more proactive approach, with over 50% expressing confidence that the U.S. economy will improve this year. Additionally, more than 60% expect their own businesses to fare better. This marked shift from passive optimism to a commitment to growth is evident in several key areas:
- Investment Increases: 70% of businesses plan to boost capital expenditures in 2026, up from 68% the previous year. Notably, the proportion of firms planning a "significant increase" in investment surged from 11% to 19%.
- Generational Optimism: Younger entrepreneurs are driving the positive sentiment, with 44% of Gen Z owners expecting their business to be in "much better shape" compared to 14.5% of Baby Boomers.
- Workforce Expansion: 57% of businesses intend to hire more staff, a rise from 53% in the prior year, with 17% planning significant increases in personnel, up from 8%.
- AI Adoption: Engagement with artificial intelligence (AI) tools has risen dramatically, with 58% of businesses utilizing or planning to deploy AI in 2026, compared to 41% in 2025.
Challenges Remain Amid Positive Outlook
While the survey results reflect an optimistic shift, business owners remain acutely aware of several pressing challenges. Inflation is cited as the primary concern, with the percentage of respondents acknowledging it dropping from 60% last year to 49% this year. Concurrently, political and policy uncertainties have emerged as growing concerns, affecting 37% of respondents, rising from 29% in 2025.
Anthony Labozzetta, President and CEO of Provident Bank, commented on the findings, stating, "Despite the headwinds of inflation and uncertainty, the dominant story for 2026 will be resilience and action. Businesses are adapting, modernizing, and expanding, and Provident Bank is committed to serving as a key partner to business owners as they strategize on what is needed to leverage this momentum."
About the Survey and Provident Bank
The Economic Outlook Survey was conducted by Pollfish on behalf of Provident Bank, gathering insights from 1,000 business owners and senior executives across the U.S. operating companies with revenues exceeding $1 million annually. For access to detailed findings, interested parties may contact Vested directly at providentbank@fullyvested.com.
Founded in 1839, Provident Bank stands as New Jersey's oldest community-focused financial institution and operates as a wholly owned subsidiary of Provident Financial Services, Inc. (NYSE: PFS). As of September 30, 2025, the bank managed assets totaling $24.83 billion, offering a range of financial services across its network of over 140 branches in New Jersey, New York, and Pennsylvania.