Barlow Q3 Business Sentiment Report

I am pleased to announce the release of Wells Fargo’s first quarterly Commercial Business Sentiment Study, in collaboration with Barlow Research. Between August 30 - September 4, we surveyed more than 350 CEOs and CFOs nationwide, at companies with an annual revenue ranging from $10 million to $500 million, about the state of the economy, business trends, growth opportunities, and overall areas of business concern.

With November 5 right around the corner, 48% of respondents said election outcome uncertainty is a top concern. However, the top concern was increased prices/cost of doing business, cited by 58% of respondents. This indicates that while election outcomes matter, inflation and the cost of materials, taxes, and wages are weightier according to business owners.

Despite uncertainty, the results of the survey show firms have been able to improve their financial position in the last three to six months through increased efficiency, improved hiring, and growing customer bases. When surveyed, most respondents were preparing for anticipated interest rate cuts, which came on September 18. At that time, 50% of respondents said reduced interest rates would allow them to grow or expand their business over the next 12 months, while 30% said that interest rate cuts would encourage them to seek additional financing in the same period. It will be interesting to see how that plays out in future quarterly survey results.

Business observers rely on indicators like the Consumer Prices Index, Jobs Report, and Producer Price Index, to measure economic health. Commercial bankers understand, however, that is only part of the story, and a truer picture requires listening to the perspectives of commercial businesses. We are pleased to share these valuable insights with you as you make decisions for your business now and in the future.