A recent report from The Kobeissi Letter reveals that only 16% of small businesses in the United States intend to invest in capital expenditures (CapEx) in the next six months, marking the lowest level since November 2009. This represents a 12 percentage point decline since November 2024, reflecting a significant drop in business confidence. The primary factors contributing to this downturn include high energy costs, taxes, inflation, and ongoing policy uncertainty. Despite a slight year-on-year profit growth of 0.3% in Q1, businesses are increasingly hesitant to expand, with many choosing to save cash instead. Additionally, payroll growth has turned negative for three consecutive months, indicating a slowdown in hiring. The overall small business climate appears to be under pressure, with many owners avoiding loans and external funding, signaling expectations of slower growth ahead. As fuel costs rise by 23% year-on-year, sectors such as agriculture and transport are particularly affected, further complicating the economic landscape for small businesses.