Research President Yardini Ed Yardeni analyzes new economic data between market weakness to make money.
A new analysis by the Bank of American Institute reveals that small businesses appear to be gaining financial momentum, although tariff policy changes can promote inflation and with it a new challenge to benefit.
The Bank of American Institute report analyzed the bank account data of the Bank and found that from the six -month period from August to January, the increase in deposits among small business customers exceeded the increase in total payments in three years.
“The positive is that revenues are growing and we are seeing that for the first time in the last three years where deposits are overcoming payments, so it is really a good moment that enters 2025 and the optimism of small business is Raised, “American economist Taylor Bowley told Fox Business. “But that doesn’t mean there is still no risk of cost pressures to curb small business enthusiasm and growth forward.”
While inflation has slowed significantly since its 40-year level of 2022, it remains elevated and its impact on salaries has contributed to the continuation of cost increases for small businesses.
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A new analysis by the Bank of American Institute found that small businesses entered 2025 with positive financial momentum. (Reuters/Brian Snyder/Photo File/Reuters Photos)
“Income seems to be growing, which is really good because small businesses historically work at the very small profit boundaries,” Bowley said. “But the only thing is that costs don’t seem to fall.”
Bowley said wages is one of the largest categories of spending for small businesses and that wage inflation as it is linked to the salary list has been a major factor in increasing the costs those companies face, although expanding power The worker can also be a factor.
“Wage inflation is not the only manager in terms of what we are seeing with salary increases. It is an indication that small businesses are still able to keep people on the payroll, and also potentially Expand their labor force, ”she said.
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The data of the Bank of American Institute showed that despite the continued increase in cost, the faster increase in revenue allowed the small business entry report to the exit-which the firm views it as a representative for the benefit of small business- To grow 1.5% year by year as January it had been negative last spring and exceeded only 1% in the fall.
Bowley said that with some of the Trump administration tariff plans still in the influx and still to be implemented, bank data does not currently reflect which impacts they will be.
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| wisecrack | SECURITY | Last | change | Change % |
|---|---|---|---|---|
| Bac | Corp Bank of America. | 43.97 | -0.52 |
-1.16% |
She said the uncertainty about tariffs makes it difficult to discern how small businesses will respond to the passage of those increased costs to consumers in the form of higher prices.
“Small businesses are not the same as a large corporation, which can have a little more ways in terms of determination than from that price increase they would pass to the consumer, while small businesses operate at quite a lot small profit, “Bowley said
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Bowley noted that the analysis of the Bank of America’s global research team currently sees changes in trade, fiscal and immigration policies as gently inflationary – although this impact would be variable between different sectors of the economy such as tariffs, reforms and reforms government spending or immigration implementation policies.