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In a vise of slowing demand and rising costs, small businesses are signaling trouble ahead

^{Published on 2025-05-12 00:00:38 - Reuters}

- Evidence is building of an economic slowdown coinciding with President Donald Trump's effort to rewire the global economy with tariffs, as households and firms cut spending out of concern for what lies ahead.

Small businesses in the U.S. are facing significant challenges due to a combination of slowing demand and rising costs, signaling potential economic trouble ahead. According to a recent National Federation of Independent Business (NFIB) survey, small business optimism has dropped to its lowest level since December 2012, with only 39% of owners expecting better business conditions in the next six months. Inflation remains a top concern, with 28% of owners citing it as their most pressing issue, and many are struggling to pass on increased costs to consumers due to weakened demand. Additionally, labor costs are rising, with 44% of owners increasing compensation to attract and retain employees. These pressures are leading to reduced profits, with 32% of owners reporting lower earnings compared to the previous year, highlighting the precarious situation small businesses find themselves in amidst an uncertain economic environment.

Read the Full Reuters Article at:
[ [ https://www.msn.com/en-us/money/markets/in-a-vise-of-slowing-demand-and-rising-costs-small-businesses-are-signaling-trouble-ahead/ar-AA1DPzlB ] ]

N@N

In a vise of slowing demand and rising costs, small businesses are signaling trouble ahead