Business conditions in 2025 are expected to be mixed, according to a survey conducted by the Federal Reserve Bank of Philadelphia. The survey involved members of the Chamber of Commerce for Greater Philadelphia. It revealed that 33 percent of respondents anticipate an improvement in business conditions, while 29 percent foresee a decline.

The survey, now in its 15th year, was carried out from November 7 to November 25, 2024. Among its findings were that fifty-eight percent of members reported an increase in prices paid in 2024 compared to the previous year. This figure represents a decrease from the prior year's survey when 77 percent noted higher prices than in 2022.

Common challenges identified by members included labor costs, financing and interest rates, and poor sales. Additionally, uncertainty regarding regulations and government policy was cited as an issue by 24 percent of participants.

Roc Armenter, executive vice president at the Philadelphia Fed and director of research and the Consumer Finance Institute, presented these findings at the chamber’s annual State of the Economy event. He stated: “Surveys like this bolster our understanding of the regional economy.” He further noted that these results align with other data and surveys observed by Philadelphia Fed researchers and feedback from business and community contacts.

The full survey is available for those interested in detailed insights. More information about other regional research conducted by the Philadelphia Fed can also be accessed.

The Federal Reserve Bank of Philadelphia plays a role in formulating monetary policy and supervises various financial institutions while providing services to depository institutions and the federal government. It is one of twelve regional Reserve Banks forming part of the Federal Reserve System, serving areas including eastern and central Pennsylvania, southern New Jersey, and Delaware.