Provident Bank Mid-Year Survey Shows Business Owners Balancing Tariff Concerns with Economic Optimism

Core Insights - Business owners exhibit a positive outlook for economic growth in the latter half of 2025, despite mixed feelings regarding the impact of tariffs on the economy [2][6] - The survey indicates that businesses are strategically responding to economic uncertainty by managing inventory carefully and delaying capital expenditures [3][4] Economic Sentiment - Over 60% of business owners believe the economy will grow in the next six months, yet over 55% express dissatisfaction with current tariff policies, viewing them as detrimental to the U.S. economy [6] - More than 70% of respondents are concerned about the impact of tariffs on their businesses, although the immediate effects have been minimal, with over 80% reporting "somewhat of an impact" or "none" [6] Tariff Impact and Business Strategies - A significant portion of business owners anticipates that tariffs will decrease their revenue, with over half believing tariffs will negatively affect their businesses [6] - Approximately 32.55% of businesses have adjusted their inventory levels in response to tariffs, while 31.69% are still evaluating their inventory strategies [6] - Just under 30% of businesses plan to halt hiring, while nearly 50% report no changes to their hiring plans [6] Capital Expenditures and Pricing Strategies - A slight majority (41.68%) of respondents plan to delay major capital expenditures due to economic uncertainty [6] - Over 37% of businesses expect to pass the cost of tariffs onto customers, while just under 30% anticipate absorbing these costs [6]