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The U.S. Economy Is Leaving Small Businesses Behind
The New York Times • • general
Key Points:
- Small businesses in the U.S. started the year optimistic due to easing inflation, lower borrowing costs, tax breaks, and more predictable tariff policies under President Trump.
- The ongoing conflict with Iran has increased fuel and material costs, accelerating inflation and diminishing hopes for further interest rate cuts this year.
- Despite strong earnings from large corporations and a booming stock market, small-business sentiment has sharply declined, with many firms halting hiring and expansion plans.
- The National Federation of Independent Business reported its lowest economic expectations since Trump's second term began, and small-business profitability growth slowed to a two-year low in April.
- A preliminary deal between the U.S. and Iran was announced to end the conflict, but economic challenges for small businesses are expected to persist.
