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Citizens Business Conditions Index™ Rebounds Slightly in Q3A strong labor market and resilient consumer trends supported a slight improvement in economic conditions during the third quarter as inflation showed some signs of abating, according to the national Citizens Business Conditions Index™ (CBCI), released today. After falling below 50 in the second quarter, the index rose to 50.7 in the third quarter, signaling a return to modest growth. New business applications leveled off during the quarter, but operating conditions for small businesses generally improved as interest rates stabilized following the Federal Reserve's latest rate hike in July. Citizens' proprietary data on client revenue was stronger across most industries during the third quarter. Consumer Services and Healthcare remained among the top sectors while the manufacturing industry continued to contract, though at a slower rate. "The U.S. economy was resilient in the third quarter as inflation showed signs of easing despite continued strength in the labor market," said Eric Merlis, managing director and co-head of global markets, Citizens. "While the operating environment remains fragile, Citizens' middle market and mid-corporate clients continue to perform reasonably well." The underlying components of the index showed a slight rebound in the business environment during the third quarter. Three of the five components provided a boost to the Index level, while one was neutral and one weighed on the reading.
"The third-quarter CBCI shows a business environment that improved over the last quarter as initial jobless claims declined, consumer trends remained resilient and inflation eased," said Merlis. "From here, the focus will continue to be on policy-makers as they navigate a complex economic and geopolitical environment and attempt to walk the fine line toward a soft landing." 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.
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