Read our full analysis for a more in-depth look at these trends.
Small Business Checkpoint: A roadmap across the country
Small business margins have tightened as fuel costs surge and payroll growth slows unevenly across regions and sectors.
May 2026
Key takeaways
- Small business profitability fell 1.3% year-over-year (YoY) in April, marking the weakest reading in two years, according to Bank of America small business account data. Small business sentiment has fallen as sales have slowed, suggesting higher prices are weighing on margins.
- Gasoline spending growth per small business client jumped nearly 31% YoY in April, adding to inflationary pressures. Still, payroll growth held up in agriculture and transportation, likely reflecting operational necessity and seasonal demand rather than a labor market upswing, according to Bank of America small business payments data.
- In many states, small businesses account for a significant percentage of employment, underscoring their importance in local economies and net job creation. Several cities in the South posted the strongest payroll gains in April, led by San Antonio. In contrast, payroll growth deteriorated sharply across major Western metros, with Las Vegas showing the steepest decline.
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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