Listen to this articleLeaders of small and medium-sized businesses are confident about the future and are planning more spending in the first quarter of 2026, according to a new survey by Citizens Bank.
The Citizens Q1 2026 Business Pulse survey found that 86% of middle market business – defined as having annual revenue of more than $5 million – expect their revenue to increase in the first three months of the year. And 68% of those business report that they are confident about the economy.
Among smaller companies – those with annual revenue of $500,000 to $4.9 million – 64% are expecting their revenue to grow. Of those, 60% are planning expenditures designed to enhance efficiency and further increase revenue. In addition, 41% are planning to hire more workers; only 3% say they plan to reduce headcount.
“Small business owners are navigating structural headwinds and finding solid footing in the process,” said Mark Valentino, head of Business Banking at Citizens. “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.”
The surge in optimism suggests the entrepreneurial engine is not just surviving, it’s accelerating.
– Mark Valentino, head of Business Banking, Citizens
Citizens said the results bode well for the economy to start the year.
“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 advantages of opportunities.”
Based in Providence, R.I., Citizens provides a range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. The bank reports $227.5 billion in assets as of Sept. 30, 2025.
The bank maintains a significant presence in New Jersey after adding about 200 locations here though the 2022 acquisitions of Investors Bancorp and branches from HSBC.
For the Q1 2026 Business Pulse survey, Citizens contacted 500 principals – owners, founder, partners, CEOs, presidents and others – of U.S. business with up to 1,000 employees. The survey was conducted in November 2025.
