Citizens Business Conditions Index™ Reaches Highest Level in Three Years as Economic Recovery Gains Momentum

Rhea-AI Summary

Citizens announced a significant increase in its Business Conditions Index™ (CBCI) to 57, marking the highest level in three years and a five-point rise from last year. A reading above 50 indicates economic expansion. The improvement is attributed to strong momentum from vaccinations and fiscal support, despite inflation concerns. Key positive metrics include rising ISM Manufacturing and Non-Manufacturing Indexes and a decrease in initial jobless claims. Citizens, with $185.1 billion in assets, continues to provide tailored financial solutions across various banking sectors.

Positive

• Citizens Business Conditions Index™ (CBCI) rose to 57, indicating economic expansion.
• Five-point increase compared to the previous year marks the highest level in three years.
• Improvement in ISM Manufacturing and Non-Manufacturing Indexes supports the positive outlook.
• Decrease in initial jobless claims signals strengthening labor market.

Negative

• Concerns about inflation persist, potentially impacting future economic conditions.

Citizens announced today that the strength of the economic recovery pushed this past quarter’s national Citizens Business Conditions Index™ (CBCI) to 57, its highest reading in three years and up five points compared to last year. A reading above 50 is considered expansionary.

“What we see at this stage of the recovery is strong momentum – the payoff of vaccinations, of the ongoing power of fiscal and monetary support, and of the growing readiness to return to normal activities,” said Tony Bedikian, head of global markets at Citizens. “Inflation is worth watching and the verdict is still out on whether the inflation we have seen is transitory or beginning to surge. We are closely monitoring supply chain and labor data as well as the impacts of pent-up post-pandemic demand. Barring exogenous factors, the U.S. economy seems poised to continue its steady recovery through the second half of 2021.”

The Index is derived from a number of underlying components, many of which improved during the second quarter.

• The Institute for Supply Management (ISM) Manufacturing and Non-Manufacturing Indexes both rose for the quarter, helping to lift the Citizens Index.

• Initial jobless claims dropped in another positive sign while new-business applications were flat.

• Utilities and telecommunications companies led a strong quarter overall for businesses, according to the bank’s proprietary corporate activity data.

The Index draws from public information and proprietary corporate data to establish a unique view of business conditions across the country. An index value greater than 50 indicates expansion and points to positive business activity for the next quarter. For more information about this past quarter’s Index, please visit here.

Citizens is a trusted strategic and financial adviser, consistently delivering clear and objective advice. The Citizens approach puts clients first by offering great ideas combined with thorough market knowledge and excellent execution, to help our clients enhance their business and reach their potential. For more information, please visit the Citizens website.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $185.1 billion in assets as of June 30, 2021. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a 24/7 customer contact center and the convenience of approximately 3,000 ATMs and approximately 1,000 branches in 11 states in the New England, Mid-Atlantic and Midwest regions. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005367/en/

FAQ

What is the current Citizens Business Conditions Index™ (CBCI) reading?

The current CBCI reading is 57, indicating economic expansion.

How much did the CBCI increase compared to last year?

The CBCI increased by five points compared to last year.

What factors contributed to the rise in the CBCI?

The rise in the CBCI is attributed to strong vaccination momentum, fiscal support, and improving business conditions.

How has the job market been performing according to the latest report?

Initial jobless claims have dropped, indicating a positive trend in the job market.

What concerns does Citizens have regarding the economy?

Citizens is monitoring inflation and its potential impact on the economy.