Wells Fargo’s 2024 Q4 Commercial Business Sentiment Report reveals a significant rise in commercial optimism following the 2024 presidential election. In collaboration with Barlow Research Associates, the report shows a spike in the sentiment index to 112.9, up from 102.3 in Q3 2024, marking the highest levels in four years.
The survey, conducted between November 15 and November 22, 2024, polled 307 commercial companies with annual revenues ranging from $10 million to $500 million. The results highlight increased confidence in business operations, demand for products and services, and the economy in the near and long term.
With election uncertainties behind them, 51% of respondents expect the U.S. economy to improve over the next 12 months, and 63% foresee a stronger economy in the next five years.
“The highly positive commercial sentiment recorded in Q4 was likely driven by the elimination of elections unknowns, which typically delay business decisions and tend to raise concern,” said Mary Katherine Dubose, head of Specialized Industries for Wells Fargo Commercial Banking.
Key Findings from the Q4 Report:
- Business outlook: 29% reported their business is better off compared to 12 months ago, while 43% expect improvement in the next year.
- Economic outlook: 51% expect the U.S. economy to improve in the next 12 months, up from 22% in Q3.
- Top concerns: Inflation remains the top issue for 57% of businesses, followed by increased prices (70%) and reduced demand (49%).
The Q4 report signals an optimistic outlook for 2025, with businesses poised for growth, driven by efficiency improvements and a stabilizing economic environment.
