In the lead up to Election Day last November, there was a pervasive sense of “wait and see” in the business environment, as business leaders paused on making decisive investments until it was clear how the result of the race might affect their path forward.
Several months later, the election results are clear – but the economic outlook remains uncertain. The still to-be-determined impacts from tariff policy, persistent elevated inflation, and lack of clarity about whether or when the Federal Reserve will cut interest rates has created a backdrop in which many business leaders continue to watch and wait.
“The fear of the unknown unfortunately creates a difficult environment in terms of business growth,” said Terry Begley, head of PNC Corporate Banking. “It’s not going to stop people from continuing to run their businesses well, but it will likely cause them to hesitate in terms of any major changes or investments, whether that’s an acquisition or building a new facility or any other action that aligns with their long-term goals.”
However, according to Begley, that’s not to say that the unknowns should lead to paralysis. “Even as business leaders wait for the fog to clear, there are things they can be doing to be prepared. There will come a time when the environment is stable enough for action toward a strategic objective, so it’s important to stay nimble and do your due diligence so you’re ready to act on an opportunity.”
An important part of staying ready is staying informed, and that’s where leaning on solid banking relationships can play an important role. “Right now, no one has a crystal ball. No one knows with any certainty where things are going next. But in PNC Corporate Banking, we do have deep industry connections and expertise, and this allows us to work on a very granular level with clients to find solutions that can help them mitigate risk and increase efficiency,” Begley said. “It’s also important to remember we’ve been here before – in some ways, the current environment feels a lot like the early days of the Covid-19 pandemic. But we had the solid foundation to help clients navigate the challenges then, and we still have it now.”
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