US employers plan tech upgrades and borrow despite high rates in 2026

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U.S. businesses are showing renewed optimism and growth intentions for 2026, with a slight uptick in sentiment from late 2025 according to the Principal Financial Well-Being Index. Employers are prioritizing technology modernization, including AI adoption, and are willing to take on debt for strategic investments despite high interest rates, recognizing that the value of early capital deployment often outweighs the cost of borrowing. Staffing remains stable with a focus on retaining specialized talent.

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