PROVIDENCE, R.I. — Small and midsize business leaders are increasingly optimistic about the outlook for early 2026 and are planning to step up spending, according to a new survey from Citizens Bank.
The bank’s Q1 2026 Business Pulse survey found that 86% of middle-market companies — defined as those with annual revenue above $5 million — expect revenue to increase in the first quarter of the year. About 68% of those businesses said they are confident about the broader economy.
Optimism was also evident among smaller firms. Sixty-four percent of companies with annual revenue between $500,000 and $4.9 million said they expect revenue growth in the first three months of 2026. Among those respondents, 60% said they plan to increase spending to improve efficiency and drive additional revenue.
Hiring plans were similarly positive, the $227-billion Citizens Bank reported. The survey found that 41% of small businesses expect to add workers, while just 3% anticipate reducing headcount.
‘Structural Headwinds’
“Small business owners are navigating structural headwinds and finding solid footing in the process,” Mark Valentino, head of business banking at Citizens, said in a statement. “Even in the face of challenging conditions, our clients continue to demonstrate remarkable creativity, resilience and determination. The surge in optimism suggests the entrepreneurial engine is not just surviving — it’s accelerating.”
Citizens said the findings point to a solid start for the economy in 2026, even as businesses continue to face challenges related to labor availability and inflation.
“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 with purpose can help owners take advantage of opportunities.”
