Read our full analysis for a more in-depth look at these trends.
Small Business Checkpoint: A summer rebound
Small businesses have gained momentum, with hiring strengthening and profitability growth reaching its strongest level of 2026.
August 2026
Key takeaways
- Small business hiring has shown strength this summer. Our alternative hiring indicator was up 21% year-over-year in July, according to Bank of America small business payments data. And hiring plans reported in the July National Federation of Independent Business survey reached their highest level since 2022.
- The buoyancy in small business hiring comes alongside a strengthening in profitability growth. Profits increased in July to their highest level this year, with the strongest boosts for industries such as transportation and manufacturing.
- With small businesses seemingly on firmer footing, spending has increased, though some due to inflation. For example, while the number of travel-related small business transactions rose only modestly in July, total spending increased substantially, likely reflecting higher prices, as well as businesses taking bigger or longer trips than a year ago.
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.
Additional Materials:
Get the latest from Bank of America
Institute delivered right to your inbox.
