Comerica(US:CMA) Prnewswire·2025-12-09 19:55Core Insights - America's small businesses are entering 2026 with strong confidence and resilience, with 80% of owners optimistic about future success and 79% expecting sales growth [1][3][8] Group 1: Business Confidence and Growth Expectations - 80% of surveyed small business owners are confident about their business outlook for the next 12 months, with the highest confidence levels in the South (83%) and among technology firms (93%) [8] - 79% of respondents anticipate revenue growth in 2026, projecting an average increase of 7.9%, with technology and construction firms showing the most optimism [8] - The Comerica Small Business Pulse Index slightly decreased from 56.0 in Q3 2025 to 55.5 in Q4 2025, indicating a still optimistic sentiment among small businesses [7][13] Group 2: Impact of External Factors - The 43-day federal government shutdown negatively impacted 29% of surveyed small businesses, particularly in the D.C.-Maryland-Virginia region (49%) and the leisure and hospitality sector (38%) [5] - Despite challenges, two-thirds of respondents reported being unaffected by the shutdown, highlighting the adaptability of many small businesses [6] - 42% of small businesses reported negative effects from tariffs introduced in 2025, with manufacturing and retail sectors being the hardest hit [9] Group 3: Capital Investment and Operational Strategies - 57% of respondents plan to make capital expenditures in 2026, averaging $109,000, with technology firms planning the highest investments at an average of $187,000 [8] - Nearly half (48%) of surveyed businesses aim to improve operational efficiency, while 45% of technology firms plan to integrate new technologies [10] - More than half (53%) of respondents indicated that recent Federal Reserve rate cuts have positively impacted their business, leading one in three to invest more or take calculated risks [8] Group 4: Concerns and Mitigation Strategies - Inflation is the top concern for 23% of respondents, followed by tariffs (14%) and government policies or regulations (11%) [8] - Small business owners are adopting various strategies to mitigate the impacts of tariffs, including leveraging lower borrowing costs to invest and innovate [9] - 23% of surveyed small businesses are taking on new loans or tapping credit lines, with higher rates among female-owned businesses [15]