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Published February 22, 2022
Commercial Commercial Insights Credit & Economic TrendsThe fourth quarter of 2021 enhanced the pressure felt by small businesses as the largest wave of COVID-19 hit the US. In addition to the effects of pandemic outbreak of labor and consumer engagement, an inflationary surge, largest increase since 1982, coupled with pandemic-related supply-and-demand imbalances, weighed heavily on US small businesses along with a notable impact to consumer sentiment.
Although workers were getting raises in the currently tight job market, rapid price increases are eroding consumers' earning power. Average wage earnings went up by 4.0% in Q4 '21 vs. the previous year, yet a 7.5% increase in inflation results in a net decline in real earnings. Workers' money is not going as far as it used to. Rising wages, however, put pressure on businesses' payrolls who may be forced to pass those costs to consumers.
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Experian’s Brodie Oldham, VP of Commercial Data Science, and Marsha Silverman, Strategic Analytic Consultant revealed several insights on how small businesses are performing during the Q2 Quarterly Business Credit Review.
During the webinar we asked the audience:
Outstanding student loan debt in the U.S. has reached an all-time high of $1.63 trillion, and the ripple effects are being felt far beyond the personal finance arena. This unprecedented debt burden is now shaping the way many small business owners borrow, manage credit, and maintain financial stability.
Check out the full report to see how these trends could impact your strategy!
The latest Jobs Report casts doubt on the Fed’s (and many economists’) narrative that the labor market is on solid footing. New data now show that job creation is near stall speed and other areas of the economy are slowing as well. This data, combined with a growing view that the impact of tariffs on inflation will neither be as significant as first anticipated (though still meaningful) nor as persistent, is likely to lead the Fed to cut rates at their September meeting. Get the latest on these trends, plus our new Fed rate cut forecast in Joseph Mayans' latest Macro Moment, "Rate Cuts Incoming."
Although the U.S. economy remains solid and has resisted a broader slowdown thus far in 2025, the outlook remains highly uncertain. In this environment, it is imperative for businesses to stay on top of the latest economic developments. Experian’s Chief Economist Joseph Mayans, Director of Fintech Gavin Harding and Head of Automotive Financial Insights Melinda Zabritski, will provide a look into: