Half of small business owners expect their revenue to grow in the next three months, reaching the highest level of optimism recorded in three consecutive quarters, according to the Citizens Q3 2026 Business Pulse survey. This rising confidence in individual business prospects contrasts sharply with a decline in faith in the broader U.S. economy. The survey found that only 24% of respondents are extremely or very confident in the national economy, down from 36% in Q2 2026.

"Small business owners are proving they can hold their own, even when the world around them is full of uncertainty," said Mark Valentino, Head of Business Banking at Citizens. "The data is not showing a contradiction, but an opportunity. Those who forge ahead and continue to be nimble and innovative will separate themselves from the competition."

Key Business Challenges

Rising costs and inflation remain the primary obstacle for small businesses. Fifty-one percent of respondents cited these factors as their biggest challenge, outpacing economic uncertainty at 43% and finding and keeping customers at 39%.

Operational Plans

Despite external pressures, business owners are maintaining stable operational strategies. Hiring plans remain largely unchanged, with 64% of respondents planning to keep full-time headcount the same over the next three months. Only 18% plan to increase full-time staff. Similarly, credit appetite is steady, with 67% expecting no real change in their use of loans, lines of credit, or other financial resources.

Survey Methodology

The Citizens Q3 Business Pulse Survey was conducted between June 1 and June 18, 2026, surveying 500 business principals, including owners, founders, partners, CEOs, and presidents. Results are weighted by company size to reflect the U.S. small business population. The survey measures near-term expectations for revenue, hiring, spending, credit usage, and key business challenges.

The latest US Job Openings and Labor Turnover Survey (JOLTS) data for May showed job openings at 7594K, registering a slight decline from the previous reading of 7618K. Despite the marginal dip, the actual figure came in notably above the market estimate of 7296K, suggesting labor demand remained stronger than anticipated.

Key Highlights from the May JOLTS Report

The May JOLTS data provides a snapshot of the US labor market's demand side, with job openings serving as a key indicator of employer hiring intent. The following table summarizes the key data points from the release:

Actual vs. Estimates

The May reading of 7594K came in 298K above the market estimate of 7296K, reflecting a broader resilience in US labor demand. The marginal decline of 24K from the previous figure of 7618K indicates a slight moderation in job openings month-over-month, though the overall level remains elevated relative to consensus forecasts.

The JOLTS job openings data is closely monitored as an indicator of labor market conditions, offering insights into the balance between labor supply and employer demand across the US economy.