Channel sentiment on the U.S. economy rebounded in Q3 2026, as "strong" views climbed to 43% from 36% in Q2 while "neutral" fell to 23%. Twelve-month optimism rose to 53% after three straight quarters at 48%, and pessimism eased to 32%.
Oil prices continue to weigh on the channel, now touching 85% of ITSPs, with those reporting a major impact climbing from 35% to 40%, the highest share since tracking began in Q1.
Concern over the war in the Middle East held steady, with "very concerned" flat at 31% and "somewhat concerned" edging up to 51%, leaving just 19% of ITSPs unconcerned.
Tariff sentiment on ITSPs' own businesses remains negative at 43%, though positive views rose to 36% from 32%. The 12-month trade policy outlook rebounded to strongly positive: 39% now expect a positive business impact, up from 33%, while negative views fell to 30% from 37%.
65% of ITSPs now pass tariff costs on to customers, with those passing costs on fully rising to 25% from 19% in Q2, while cost absorption held near 24%.
Higher COGS remains the top negative tariff impact at 62%, down from 68%, and customer pricing rose to the #2 most-impacted business area at 48%, just behind hardware costs at 49% and ahead of supply chain continuity at 37%.
Q3 closed with the channel more confident about the economy and trade policy, even as oil prices and tariff-driven pricing keep costs front of mind.