The study shows a decrease in small companies by 6.7 % amid the costs of the increasing tariff

The Bank of America Institute reported that the company’s data indicates a slowdown in employment by Small companies The customs tariff payments were also paid by companies that rise goods.

The report found that small employment companies’ payments fell for the third month in a row in July Bank of America Small business data. The company’s data showed that employment decreased by 6.7 % on an annual basis in a three -month average moving average, with July in the third month in a row of declines.

Taylor Polly, an economist at the Bank of America Institute, told Fox Business in an interview that has a reflection since the beginning of the year and coincides with the customers of small companies who make direct payments to customs that rise in these expenses by approximately 170 % from the beginning of this year amid the Trump’s high tariff.

“We started seeing the construction and manufacturing payments that rise, while other sectors such as retail and services decreased,” Polly said.

He missed the growth of jobs in the United States in August, amid economic uncertainty

Polly pointed out that the growth of small business profitability remained positive, and it began to slow down and added that during Consumer spending Growth has increased, it is not clear at this time whether it is more because of the purchase of consumers or if they face higher prices due to the high customs tariff prices on these goods.

She also said that the National Union of Independent Companies (NFIB) reported in a recent survey that the share of small business owners who reported poor sales as the best problem in business has reached the highest level since February 2021.

The Federal Reserve’s favorite inflation scale shows that consumer prices remained in July

Polly said that the definitions and uncertainty facing companies because they weighing employment decisions lead to an increase in employment in some sectors, though Higher costs of definitions Hit the small companies that are less able to change their supply chains or deal with the financial burden.

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“We also see some restrictions in terms of supplying workers that lead to this Lack of employmentPolly said, noting that the trend plays the growth of the salaries of small companies in Bank of America.

“You are seeing sectors such as construction, restaurants and housing – the growth of salaries has increased since the beginning of the year, but this contradicts what we see in the growth of wages in general, as it already decreases slightly.”

Polly pointed to the cases of large companies circulating to the public, which said that the definitions lead to high prices on certain products in quarterly profit calls, adding that small companies have a lower time limit to changing their sources or absorbing the definitions in their profit margins.

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She said: “When we think about small companies that you cannot, for example, switch the supply chain with ease that may be for the largest companies, it is not surprising to me that we are starting to see profitability declining, because small companies will face more pressure on that front because they are working on thinner profit margins.”