Read our full analysis for a more in-depth look at these trends.
Small Business Checkpoint: One shock after another
Though profitability growth remained positive, rising energy prices and heightened uncertainty are impacting small business capex.
April 2026
Key takeaways
- Gasoline spending per small business client surged 23% year-over-year (YoY) in March, with higher fuel costs spilling over into freight, fertilizer, and inventory expenses. The pressure is especially pronounced in agriculture and transportation, while small wholesalers are also grappling with inventory cost increases exceeding 60% YoY — alongside ongoing tariff headwinds — according to Bank of America payments data.
- Small business payroll growth turned negative for the third straight month, signaling that owners are pulling back on headcount amid cost uncertainty. At the same time, small business payments to hiring firms have finally turned positive, with construction and manufacturing hiring nearly 40% above the 2023 average.
- Small business balance sheets look stable, and small business profitability growth among these companies was positive in the first quarter, according to Bank of America account data. But with more small businesses choosing not to seek external financing and overall payments growth hovering around 1% YoY in March — in our view — such firms are prioritizing flexibility over expansion for now.
Small Business Checkpoint is a regular publication from Bank of America Institute. It aims to provide a real-time assessment of small business spending activities and financial well-being, leveraging the depth and breadth of Bank of America’s proprietary data. Such data is not intended to be reflective or indicative of, and should not be relied upon as, the results of operations, financial condition or performance of Bank of America.
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