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Small business hiring and profits improve in July, Bank of America data shows
ColoradoBiz Staff //August 18, 2026//
Small business profitability growth continued to climb in July Small business account inflow-to-outflow ratio (monthly, YoY%, three-month moving average). Courtesy of Bank of America internal data, Bank of America Institute.
Small business profitability growth continued to climb in July Small business account inflow-to-outflow ratio (monthly, YoY%, three-month moving average). Courtesy of Bank of America internal data, Bank of America Institute.
Small business hiring and profits improve in July, Bank of America data shows
ColoradoBiz Staff //August 18, 2026//
In Brief:
- Bank of America hiring indicator rose 21% year over year
- NFIB survey shows highest hiring plans since October 2022
- 36% of small business owners report unfilled job openings
- Small business payments increased 3.6% from a year earlier
Small business hiring and profitability strengthened in July, although employers continued to report difficulty finding workers, according to a Bank of America Institute report.
The bank’s alternative hiring indicator rose 21% from a year earlier based on a three-month moving average. The measure tracks payments from Bank of America small business clients to hiring firms.
A National Federation of Independent Business survey also found hiring plans reached their highest level since October 2022. A seasonally adjusted net 20% of owners planned to add jobs during the next three months, up 9 percentage points from June. However, 36% of owners with job openings said they could not fill them, the highest share in more than a year.
Bank of America account data showed the ratio of money flowing into small businesses compared with money flowing out reached its highest level in more than a year. Transportation and manufacturing companies recorded some of the largest gains, while apparel businesses and restaurants posted declines.
Small business payments increased 3.6% from a year earlier. Travel-related transactions rose 4.5%, but spending rose faster, suggesting higher prices and larger or longer trips contributed to the growth. Airline and gasoline expenses accounted for much of the increase, while lodging activity was relatively flat.
The findings are based on aggregated and anonymized transactions from Bank of America clients generally reporting less than $5 million in annual revenue. The data is not comprehensive and is not generally adjusted for seasonal changes.
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