Business owners are approaching 2025 with a mix of optimism and uncertainty. The latest Principal® Financial Well-Being IndexSM reveals that while most business owners (64%) feel positive about their own 12-month outlook, their confidence in both the overall U.S. economy and their local economies is declining. Confidence in the broader U.S. economy has decreased sharply – a 14-point drop since last July – alongside a 12-point decrease in confidence in their local economies.

Economic inflation remains a top concern for both employers and employees as financial pressures continue to mount. While it’s impossible to predict exactly how the economic landscape will evolve, benefits professionals are uniquely positioned to help business owners plan for likely scenarios based on the specific needs and financial health of their business. During uncertain times, this guidance can empower them to evolve strategies, prioritize resources, and navigate risks with confidence.