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.
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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.
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