The Bank of America Institute today released a new publication that discovers the continued resilience of small businesses. Bank of America’s new small business data shows that despite economic headwinds, small businesses continue to excel in areas as diverse as credit and debit card spending, travel expenses, and payroll. indicates that there is Overall small business payments per client he increased 11% year-over-year in August from 3% year-over-year in the previous month. Card spend per client increased 13% year-over-year last month, surpassing his 7% growth rate in July.
One of the key reasons small businesses are staying resilient is the resumption of business travel. According to the American Travel Association, pre-pandemic, business travel accounted for more than a quarter of total travel spending in the United States. Bank of America internal data Travel transactions per small business customer are at 90% of their annual average in 2019, the highest level since the pandemic began. This includes airlines, accommodations, cruise lines, travel agents, car rentals, and other forms of transportation. moreover, Spending a small business card per client for travel A 31% year-over-year increase in August from 19% in July.
Small businesses also continue to feel strong in payroll. Average total labor costs per client in July increased 11% year-over-year on a three-month rolling average, suggesting strong hiring and wage growth momentum. Restaurant and bar payrolls have eased from recent highs, falling to a still resilient 18% year-on-year in August.
Other highlights from this publication include:
- Small business card spending varied significantly by income bracket, with high-income SMEs spending at a faster pace than low-income SMEs.
- For small businesses with more than $1 million in annual sales, Card spend on travel per customer increased the most in August at 43% year-on-yearPart of the increase was due to a recovery in travel spending levels, which fell last August due to the proliferation of Delta variants.
- After-tax wages, based on Bank of America small business client consumer deposit data, rose 6.1% year-over-year on a three-month rolling basis in August. (For more information, see our latest Consumer Checkpoints). That topped Bureau of Labor Statistics data that showed him a 5.2% increase in average hourly earnings in August year-over-year.
“Despite economic headwinds such as high inflation, small businesses are headed down with cautious optimism,” said Anna Zhou, an economist at the Bank of America Institute. We see things like payroll resilience as further evidence that the economy is on track.”
Small Business Checkpoints are published periodically by the Bank of America Institute. It aims to leverage the depth and breadth of Bank of America’s proprietary data to provide a real-time assessment of small business spending activity and financial well-being. Such data are not intended to, and should not be relied upon, to reflect or imply the results of operations, financial condition or performance of Bank of America.
See the Small Business Checkpoint for methodology and definitions.
The Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Founded in 2022, the Institute is a think tank that utilizes banking and global data and analytics to provide timely and unique perspectives on economic, environmental, social and governance issues.ESG), and global transforms. The Institute will grow from 67 million consumer and small business customers, 54 million verified digital users, $3.8 trillion in total payments in 2021, and $1.4 trillion in consumer and wealth management deposits to bank proprietary Leveraging the depth and breadth of your data. With this robust data set, the Institute provides a unique perspective on economic health. It also addresses long-term trends and enhances thought leadership across banks to share these findings with the public.
Bank of America is one of the world’s leading financial institutions, providing a full range of banking, investment, wealth management and other financial and risk management products and services to individual consumers, small businesses and large corporations. doing. The company offers unparalleled convenience in the United States, operating approximately 4,000 retail financial centers and approximately 16,000 ATMs, and award-winning digital banking with approximately 55 million verified digital users. Bank of America is a global leader in wealth management, corporate banking, investment banking and trading across a broad range of asset classes, serving businesses, governments, institutions and individuals around the world. Bank of America provides industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in the United States, its territories, and approximately 35 countries.Stocks of Bank of America Corporation (NYSE:BAC) It is listed on the New York Stock Exchange.
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Miranda Caruso, Bank of America
Phone: 332-238-8374
miranda.caruso@bofa.com
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