Read our full analysis for a more in-depth look at these trends.
Small Business Checkpoint
Home away from home for the holidays
- Small businesses are feeling the pinch from a fairly muted holiday shopping season. Bank of America data suggests account inflow per small business client in the retail trade sector was down 5% year-over-year (YoY) in November. But while consumers may not be buying as much, it seems they are still traveling: lodging account inflow per small business client was up 3% YoY in November.
- Strong demand for lodging also means more workers are needed in this sector. Payroll payments for lodging small businesses ticked up further to 16.3% YoY in November 2022, in contrast to continued moderation in other sectors, according to Bank of America data.
- Looking past the holidays, small business owners remain cautious. According to a proprietary Bank of America survey of small business owners, more than half of respondents expect a recession in 2023 and plan to reduce spending accordingly. This might be starting to play out, as payments per small business client slowed further across channels in November, according to Bank of America data.
Hitting the buffers?
Savings buffers are still relatively high, though it appears low-income households are beginning to tap into their savings.