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U.S. Business Sentiment Falls as Economic Concerns Persist, Principal Financial Well-Being Index℠ Finds

  • U.S. business sentiment fell 8% to a record low of 6.02 out of 10 in the latest Principal Financial Well-Being Index due to energy price volatility & economic uncertainty.
  • Small & midsize businesses reached an all-time low sentiment score of 5.28, creating the widest gap between them & large businesses since March 2021.
  • Only 16% of business leaders believe the U.S. economy is growing, contrasting with 52% who report their own companies are expanding.
  • 93% of employers making operational adjustments in 2026 developed or redeployed existing talent through upskilling, cross-training, or role changes.
  • 72% of employers utilized flexible or specialized talent, while 58% adopted AI & automation to modify work processes.
  • 98% of employers who adjusted work methods reported at least one positive outcome, with 51% noting improved productivity & efficiency.
  • Staffing levels remained stable in 2026, with 41% of employers maintaining headcount & 48% increasing it over the last three months.
  • Only 3% of employers reduced or eliminated benefits in 2026, while 63% made no changes & 8% expanded their offerings.
  • Concerns regarding inflation, recession risk, & economic stability continue to negatively influence leaders' confidence in their financial outlooks.