U.S. Small-Business Sentiment Plunges as Iran War and Inflation Squeeze Profits
Updated
Updated · The New York Times · Jun 17
U.S. Small-Business Sentiment Plunges as Iran War and Inflation Squeeze Profits
3 articles · Updated · The New York Times · Jun 17
Summary
Small businesses across the U.S. are pulling back on hiring and expansion after months of economic shocks erased the optimism many had at the start of 2026.
Fuel and material costs jumped during the monthslong Iran war, inflation accelerated, and hopes for additional rate cuts this year faded, leaving smaller firms with less cushion than large corporations.
NFIB said in May its measure of economic expectations hit the lowest level since President Trump began his second term, after its small-business optimism index fell to 95.3.
Bank of America Institute said small-business profitability in April grew at its slowest pace in 2 years, while job openings at small companies have flatlined even as big companies post solid earnings and stocks boom.
A preliminary U.S.-Iran deal announced Sunday could ease pressure, but the report said the economic fallout for small firms is likely to linger.