PROVIDENCE, R.I.–(BUSINESS WIRE)–Economic conditions showed definite signs of improvement during the third quarter of 2020, the first gain during a year dominated by impacts of the pandemic. The Citizens Business Conditions Index™ rose to 61.2 at the end of the third quarter, up from 60.3 at the end of the second quarter, with some sectors, such as manufacturing, faring better than others as the U.S. economy started to get back on track.
Citizens’ proprietary measure of business activity among clients showed particular strength in the industrial and government services sectors. The fourth quarter may pose continued challenges for some sectors, however, as the number of COVID-19 cases rises in many states.
“It’s obvious to everyone that life is not back to ‘normal’ in the United States with the ongoing battle to contain COVID-19. Still, businesses are proving to be incredibly resilient,” said Tony Bedikian, head of global markets at Citizens. “The support from the Fed has been a huge factor. The capital markets are operating well and we are seeing a lot of effective adjustments made by small and medium-sized companies as the government weighs possible additional stimulus.”
The Index is derived from a number of underlying components, most of which improved during the third quarter.
- The Institute for Supply Management (ISM) Manufacturing and Non-Manufacturing Indexes were up for the quarter. Manufacturing rose more sharply while the broader services sector recovery held steady.
- Employment increased during the third quarter, but wage growth decreased, impacted by the growing rate of job gains in the lower-wage workforce.
- Proprietary measures of business activity among Citizens’ more than 7,000 clients across the United States were down slightly with a few sectors improving and others still languishing.
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.
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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 $179.2 billion in assets as of September 30, 2020. 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 2,700 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.