- A recent survey of small companies Several red flags about the economy, including trends that indicate a potential recession pressure. This is that President Donald Trump keeps companies to guess what he will then do in the demobilization of workers and federal definitions, and the uncertainty about prices, costs and expansion plans.
Small companies are the backbone of the American economy as they emphasize the vast majority of workers, and they are wary of warnings about pressure on the recession.
Tuesday, Small business optimism index NFIB It decreased by 2.1 points in February to 100.7, while reading increased 4 points to 104, which is the second highest recorder.
Other results that raised red flags led: a fewer business owners expect the economy to improve, sales expectations were more depressing, and to exacerbate profit trends.
Additional data points can raise warnings about the recession, which is a mixture of slow growth or contraction as well as high inflation.
The poll found that only 12 % of owners now believe that the time is right to expand, a decrease of 5 points from January and the largest monthly decrease since April 2020-when the economy is still suffering from the early stages of the Covid-19s.
The share of business owners raising the average selling rates of 10 points from January. This is the largest monthly increase since April 2021, when the increase in inflation after birth was launched, and the third is higher on the survey date.
“The confidence that the economy will continue to grow fades, even with a new management team,” said the NFIB report.
She cited definitions and revenge on the affected countries, as well as Federal government shed workers And trimming expenses.
NFIB added that many small companies are supported by work from other companies that have government contracts.
And she warned: “Everything consistent with the general tone of the financial press, the economy is still growing, but at a slower and slower rate, the clouds of storms are formed.”
Consumers also repeat that the escalating pessimism between small business owners is repeated by consumers-as spending is the driving force behind gross domestic product and previously kept the economy through the high federal reserve rate.
Delay Surveying feelings at the University of Michigan 11 % of the previous month fell due to inflation concerns. The inflation expectations increased last year from 4.3 % last month to 4.9 % this month, the highest level since November 2022 and the third consecutive month of an extraordinary large increase. Long -term inflation forecast increased from 3.5 % to 3.9 %, the largest increase in the month since 1993.
Torsten Släk, Chief Economist in Global Administration ApolloHe said in a note on Thursday that this is a “Waiting and Economy” Consumers and companies that turn largely are distinguished by spending decisions.
“The waiting and vision economy is no longer for companies involved in trade with Canada and Mexico. The uncertainty for small companies is close to high levels at all. This is a problem because small companies are the basis for the economy, as they represent more than 80 % of job opportunities in the United States,” and warned.
This story was originally shown on Fortune.com
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