News Summary
A recent survey reveals that nearly 20% of Pennsylvania businesses view inflation as their top concern, surpassing previous worries about taxes and regulations. Over 40% of businesses have raised prices to combat increased costs, while others are delaying expansion plans. The survey also highlights concerns regarding the overall economic conditions and the ongoing challenge of finding qualified employees. A significant portion of businesses forecast a decline in conditions over the next six months, pointing to a cautious economic environment.
Pennsylvania businesses are facing significant economic challenges, with inflation now named the top concern by nearly 20% of respondents in a recent survey. This finding surpasses earlier worries related to taxes and business regulations, indicating a shift in the primary issues impacting local enterprises.
The report, which analyzed responses from 211 businesses between April 29 and May 15, 2025, highlights that inflation affects over 40% of businesses significantly and 43% moderately. The impact is palpable, as more than 40% of these businesses have raised prices to cope with increased costs, and 16% have delayed or canceled expansion plans due to financial pressures.
Following inflation, the state of current economic conditions ranks as the second-highest concern, identified by 14% of survey participants. While inflation and economic stability dominate these concerns, locating and retaining qualified employees remains a challenge for 14% and 10% of respondents, respectively. These workforce issues demonstrate ongoing labor market struggles affecting Pennsylvania businesses.
Interestingly, state taxes on business income appear less pressing, with only 5% of businesses indicating concern, while just 3% expressed worry over federal taxes. Supply chain disruptions, once a significant hurdle, have seen concerns plummet to just 1%, suggesting improvements in this area.
Regarding tariffs, 42% of respondents expect them to benefit the U.S. economy, although there is a prevailing sentiment that failing to reauthorize tax policy changes from the 2017 Tax Cuts & Jobs Act could adversely affect their operations. A substantial portion of businesses anticipates a grim outlook; 40% predict that business conditions will deteriorate further within the coming six months. This outlook aligns with current employment trends, as 31% of businesses noted lower employment levels than six months ago, while 15% reported an increase and 48% remained steady.
Sales data reflects a cautious environment, with 29% of businesses experiencing a decline, while 44% reported stable sales figures. Amid these challenges, over a quarter of respondents believe the commonwealth should increase its spending. Governor Shapiro’s proposed budget increase of 9% found support from 48% of survey participants, showcasing a demand for greater investment in state initiatives.
Additionally, the survey explored perceptions surrounding energy sources for artificial intelligence data centers and electric vehicles, with varied opinions on which energy sources to prioritize. More than half of the respondents expressed agreement regarding the regulation and taxation of skill video games, indicative of a growing concern over emerging business sectors.
The report also included insights into political sentiment, revealing a net positive view of President Donald Trump’s performance at 49%, while other political figures drew mixed reactions. The stability of business conditions in Pennsylvania appears concerning, with only 17% feeling improvements since Fall 2024. In comparison, 41% indicated worsening conditions, while 40% saw no change.
As Pennsylvania grapples with the ramifications of inflation and other economic uncertainties, businesses are left navigating a complex landscape filled with challenges. The survey data offers a snapshot of the obstacles faced in the current business climate, highlighting a need for strategic responses to foster growth and stability.
Deeper Dive: News & Info About This Topic
- Potts Mercury: Inflation Continues to Haunt Pennsylvania Businesses
- City & State PA: Improving Economic Development in PA
- Washington Post: Kamala Harris on Fracking in Pennsylvania
- Lehigh Valley Business: PA Ranked by Forbes for Business Climate
- CNBC: Top States for Business – Pennsylvania
- Wikipedia: Economy of Pennsylvania
