Small business, seeing the revenue is rising but tariff threats: Bofa

New analysis Institute of Bank of America It shows that a small business appears to be gaining financial impetus, although changes in tariff policy can push inflation, and with it – a new problem for profitability.

In the Bank Institute’s report analyzed the bank a small business Account data and found that in the six -month period from August to January the growth of deposits among small business customers for the first time in three years exceeded the overall increase in payments.

“The positive is that the income has been growing, and we see for the first time that in the last three years, when deposits are exceeding payments, so it is a really good impetus that is in 2025, and small business optimism is a Bank of America Taylor. Bowl said Fox Business. “But this does not mean that there is still no risk of spending on costs to restrain small business enthusiasm and rising forward.”

While inflation slowed down after the 40-year high in 2022, it remains elevated, and its effect on wages contributed to the constant increase in the cost for small businesses.

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The new analysis of the Bank of America found that the small business was in 2025 with a positive financial impulse. (Reuters/Brian Snyder/File Photo/Reuters Photos)

“It seems that the revenue is growing that a really good thing is because a small business is historically working on quite small income,” Bowley said. “But the only thing that costs are not necessarily reduced.”

Bowl said wages – one of the largest categories for small businesses and that Inflation of wages As it is due to wages, it was a key factor in expenses that these companies face, although the expansion of the labor can also become a factor.

“Inflation of wages is not the only driver in terms of what we see with the rise in wages. This indicates that a small business is still capable of keeping people on a salary, as well as potentially expanding their workforce,” she said.

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The data of the Bank of America’s Institute has shown that despite a constant increase in expenses, the faster revenue growth allowed the inflow and output ratio The profitability of small businesses -Ts 1.5% compared to last year. This metric was negative last spring and only surpassed 1% in the fall.

Bowl said with a few Trump administration The tariff plans are still in the stream and yet to be implemented, the data of the bank does not currently reflect what these consequences will be.

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She said that uncertainty over tariffs It makes it difficult to determine how a small business reacts in terms of transferring those who increase consumers’ cost in the form of raising prices.

“The small business does not coincide with a large corporation that can have a little more free time in terms of determining how much this price they will pass the consumer, while small businesses are working on quite small income,” said Bov.

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Bowli noted that the analysis of the bank of the global scientific and research group is currently considering trade, fiscal and immigration policy as gently inflation – although this influence would be carried out between different sectors of the economy, such as tariffs, state expenses or immigration policies.