First Internet Bank today released its Do More Business Report, revealing that small businesses are maintaining stability in a constrained economic environment by actively managing rising costs. The report highlights that while businesses feel resilient against financial shocks, inflation remains the primary challenge, prompting pricing adjustments and margin trade-offs. Consumers continue to support local businesses but are becoming more selective with their spending, emphasizing the need for flexible payment options and strategic financial guidance.

Small Businesses Show Resilience

The research indicates that over three-quarters (76%) of small business owners report being well-positioned to absorb financial shocks such as rising costs, slower demand, or delayed payments over the next 12 months. However, cost pressures remain the defining challenge for these entities. Forty-six percent of small business owners cite inflation and rising expenses as their top concern, outpacing worries about customer demand, cash flow volatility, and regulatory change.

In response to these pressures, businesses are adopting active management strategies. Approximately half of the surveyed owners have raised prices, while nearly a quarter (23%) choose to absorb higher costs to maintain customer relationships and competitiveness. This approach reflects a measured confidence, with most businesses planning steady or moderate growth rather than aggressive expansion as they balance opportunity with ongoing economic uncertainty.

Opportunity to Deepen Banking Partnerships

The report finds that most small business owners (76%) report satisfaction with their bank’s digital experience. Core capabilities such as mobile banking, real-time payments, and fraud monitoring broadly meet expectations, indicating that foundational digital tools are largely in place. However, the greater opportunity lies in strategic guidance and financial education.

As businesses navigate cost pressures and evolving demand, they are making increasingly disciplined financial decisions and looking for support beyond transactional banking. The report suggests that greater clarity around available financing options and more proactive guidance can help businesses make more informed decisions and confidently pursue opportunities in a more uncertain environment.

Consumers Remain Supportive, but Selective

Consumer support for small businesses remains robust, with nearly all consumers (96%) stating that supporting local businesses matters to them personally. Most (83%) have shopped at a small business in the past month, and 37% shop at least weekly. Additionally, 68% of consumers indicate a willingness to pay a premium to support these businesses.

Even when small businesses raise prices due to external factors, 78% of consumers say they are understanding. Yet, spending decisions are becoming more deliberate. Nearly one in five consumers report abandoning a purchase when their preferred payment method is not available, underscoring the importance of flexibility and convenience.

"The confidence we’re seeing from small businesses is encouraging, and it reflects real opportunity ahead," said Nicole Lorch, President and Chief Operating Officer of First Internet Bank. "At the same time, businesses must navigate a more complex environment, forced to balance cost pressures, customer expectations and growth decisions. Owners have told us they want faster access to capital, clearer guidance on financing options and digital tools that reflect how they actually run their businesses. That’s the foundation for the kind of banking partnership that helps businesses succeed in today’s environment."

Survey Methodology

First Internet Bank commissioned two independent surveys to understand how small businesses and consumers are navigating the current economic landscape. The small business survey was conducted by Centiment among 200 U.S. small business owners and entrepreneurs with annual revenue under $5 million. The consumer survey was conducted by Dynata among a nationally representative sample of 1,000 U.S. adults. Both surveys were fielded in March 2026.

USA new home sales for May fell 7.3%, a sharper decline than the previous period's drop of 5.7%, as the sector weakened beyond market expectations. The actual sales volume of 580K missed the consensus estimate of 638K and declined from the prior reading of 622K, reflecting softer demand in the new residential housing market.

Key Data at a Glance

The following table summarizes the May new home sales figures against prior and estimated readings:

Performance Overview

The May actual reading of 580K represents a decline from the previous figure of 622K, while also coming in well below the market estimate of 638K. The gap between the actual outcome and the estimate stood at 58K, underscoring the degree to which the reported figure trailed consensus expectations. Similarly, the reading declined by 42K compared to the previous period's figure of 622K. The monthly decline of 7.3% worsened compared to the 5.7% drop recorded in the prior period.

Market Context

The new home sales data serves as a key indicator of residential housing activity in the USA. A reading below both the prior period and the market estimate suggests softer demand conditions in the new homes segment for May. The miss relative to the 638K estimate and the sequential decline from 622K are the primary data points of note from this release.