Small businesses seeing revenues rise, but tariff threats loom
Published On Feb 26, 2025, 8:04 AM
A new analysis by Bank of America reveals that small businesses are experiencing a financial boost as they entered 2025, with revenue growth outpacing payment growth for the first time in three years. However, looming tariff threats may introduce inflationary pressures, potentially undermining this positive trend. Small business optimism is on the rise, but ongoing cost increases—particularly in wages—pose challenges to profit margins. Despite a favorable inflow-outflow ratio suggesting growing profitability, the uncertainty surrounding tariff policies complicates the financial landscape for these businesses.
Stock Forecasts
IBB
Negative
Despite the rising revenues and optimism among small businesses, the potential for tariff-related inflation could negatively impact their profitability. Vigilance on these external economic factors is warranted before making investment decisions.
Related News
Treasury sets March 21 deadline for millions of businesses to report ownership information or risk fines of $10,000 or more
Feb 20, 2025, 11:10 AM
The Treasury set a March 21 deadline to report "beneficial ownership information" after a Texas court lifted a block on enforcement.
Rachel Reeves to soften non-dom tax changes
Jan 23, 2025, 7:52 AM
It comes after critics warned the plans could prompt wealthy people to leave the UK.
Five Ways R.F.K. Jr. Could Undermine Lifesaving Childhood Vaccines
Nov 19, 2024, 5:04 AM
If he is confirmed as H.H.S. secretary, the longtime vaccine critic would be in a position to change the government’s immunization recommendations and delay the development of new vaccines.