## Infrastructure Week, August 2025

**What’s the pulse as we close out summer?** Inflation and tariffs are driving costs higher for both households and small businesses, even as sales show a modest rebound - check out more below! 👇

# 🌐 Lender Econ – August 2025  
### CPI & PPI Both Tick Upward  
Consumer Price Index (CPI) rose 0.3% in July, up slightly from June’s 0.2%. Producer Price Index (PPI) climbed 0.9%, with goods up 0.7% and services up 1.1%. These stronger-than-expected inflation gains add pressure to the Fed’s rate-cut outlook.  
_👉 **Lender takeaway:** Rising costs may be squeezing borrower profits_

### Tariffs Tighten the Screws  
New tariffs are now in effect, adding cost pressure to already strained supply chains. Import-heavy businesses are feeling it first, especially where they can’t easily pass costs on to customers. Analysts warn the impact will deepen into Q4.  
_👉 **Lender takeaway:** Trade-dependent small businesses may be hit hardest, making it tougher to hire, grow, or repay loans_

### Small Business Sentiment: Sales Rebound, Hiring Still Tight  
After a period of decline, small business sales showed signs of recovery in July. Demand is holding up, but hiring challenges remain:  
- Sales up 1.0% month over month (July), 3.6% year over year (vs. July 2024)  
- 57% of firms reported hiring or trying to hire  
- 33% had open positions they couldn’t fill — the lowest share in 4+ years  
_👉 **Lender takeaway:** Sales momentum is encouraging, but labor shortages limit growth and strain operations_

**📖 Ned Reading List - August 2025**

- [CPI report: Core inflation rises by most in six months, stoking tariff-driven price concerns (Yahoo Finance)](https://finance.yahoo.com/news/cpi-report-core-inflation-rises-by-most-in-six-months-stoking-tariff-driven-price-concerns-153654897.html?guce_referrer=aHR0cHM6Ly9uZXdzLmdvb2dsZS5jb20v&guce_referrer_sig=AQAAAMGOugDS2Iztq7DAm0wJdFI7160-IC2LP6e4jnzBeQrfrX4dnImEqiQ87-_FcmnH8j74T05QDVj_L_sziHCiShMh59QyauHu6CbCbSoQZyVfktZG2yuMqVbTIXk8r-LN5rrPYUBYAanWB1ayO7Rlw7Alrieb52-FOnkEP4LVs5Nl)  
- [Jerome Powell’s job just got a whole lot easier as inflation data sidesteps disaster (Fortune)](https://fortune.com/2025/08/12/jerome-powell-fed-rate-cut-july-cpi-inflation-unemployment/)  
- [US producer inflation heats up as goods, services prices soar (Reuters)](https://www.reuters.com/world/us/us-producer-inflation-heats-up-goods-services-prices-soar-2025-08-14/)  
- [Hot wholesale prices data puts wrinkle in Fed's rate-cut roadmap (Reuters)](https://www.reuters.com/business/hot-wholesale-prices-data-puts-wrinkle-feds-rate-cut-roadmap-2025-08-14/)  
- [Trump is tightening the screws on corporate America — and CEOs are staying mum (NPR)](https://www.npr.org/2025/08/14/nx-s1-5501591/trump-corporate-america-capitalism)  
- [Wholesale prices rose 0.9% in July, much more than expected (CNBC)](https://www.cnbc.com/2025/08/14/ppi-inflation-report-july-2025-.html)  
- [Opportunity Finance Network Releases 2023-2024 Impact Report](https://www.prnewswire.com/news-releases/opportunity-finance-network-releases-20232024-impact-report-highlighting-the-power-and-progress-of-the-cdfi-movement-302523672.html)  
- [Early Results: The Federal Reserve's 2025 CDFI Survey (Federal Reserve Bank of Richmond)](https://www.richmondfed.org/region_communities/regional_data_analysis/regional_matters/2025/early_results_federal_reserves_2025_cdfi_survey)  
- [Trump’s new tariffs go into effect as US economy shows signs of strain (AP)](https://apnews.com/article/trump-tariffs-into-effect-economy-warning-signs-eafe20de9abad312573b320fd4b5fb33)  
- [Small Business Outlook: Cautious Optimism as Tariff and Hiring Concerns Remain (US Chamber of Commerce)](https://www.uschamber.com/small-business/small-business-weekly-forecast)  
- [Bipartisan group presses OMB to unlock $324M in delayed CDFI funding, including Native support (Tribal Business News)](https://tribalbusinessnews.com/sections/finance/15229-senators-urge-white-house-to-release-delayed-native-cdfi-funding)  
- [Global Economy Took Tariff Hike in Its Stride, But Stronger Headwinds Are Ahead (WSJ)](https://www.wsj.com/economy/trade/global-economy-took-tariff-hike-in-its-stride-but-stronger-headwinds-are-ahead-5af46e60?gaa_at=eafs&gaa_n=ASWzDAgMXsMTMwgkUaRTz_V860o1Q7LHQ47RLhsGNZGq7GXWPSeqImRdYQAuFevs_ug%3D&gaa_ts=68a6456a&gaa_sig=zRnVp6bcSfIJUK5u_W-HYWpLh097tAvtLvn-c7cIryNPnPUyaO75FTgpB9fv-G6SQEhxVQbJ_qyGhaBp7HQBcQ%3D%3D)

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