Small Business Checkpoint

As credit availability improves, access to loan financing may increase, easing small business credit card pressures.

Hiring demand is slowing modestly, but payroll growth remains positive with two areas of notable strength: services and the South.

Rental pressures are growing for retailers, especially in the South, but also for small businesses with lower revenues.

Service-based small businesses’ profits are higher than both the 2019 average and overall trend, though payroll growth is slowing.

Although wage inflation and payroll costs have eased, rising rent, especially in the West, puts pressure on small businesses.

Loan payments and services inflation are driving up operational costs, though optimism around future revenue expectations remains.

As inflationary pressures remain, our data suggests small businesses have turned to credit cards as a source of financing.

After a surge in employment growth in 2023, our data suggests small business hiring has come off its peak.

Although small business credit card balances are rising, elevated deposit levels provide support.

Small businesses stayed steady despite headwinds in 2023, though high inflation could continue to pressure profits in 2024.

Small businesses appear to be ending 2023 on a good note, and we highlight five themes to watch as we head into the new year.

Why are small business card balances rising?