Bank of America data shows small business profitability fell 1.3% in April, the weakest in two years, amid rising fuel and shipping expenses.
Small business profitability declined 1.3% year-over-year in April, marking the weakest reading in two years, according to Bank of America Institute data. The drop coincides with a nearly 31% increase in gasoline spending by small businesses during the same period.
Rising fuel, shipping, and labor costs have squeezed margins, with some owners reporting losses despite higher consumer prices. A Delaware food truck operator cited a jump in travel expenses from $20 to $45 per event, alongside weak sales, as key drivers of unprofitability.
The National Federation of Independent Business’ optimism index also reflected growing concerns among small business owners in April, though full details were not disclosed.