All about the consumer: next year will see the end of the spending party

Interest rate hikes will probably end by next year, but small business owners should be prepared for a consumer slowdown

If this year has been all about interest rates, next year is all about the consumer.

Rising interest rates were a shock for small businesses in 2023, climbing from 3.25% in early 2022 to 8.5% - a 20-year high. As a result, many of my small business clients - who usually pay a few points above prime if they can get the financing at all - found themselves unable to afford the capital they needed to grow while many others faced a credit tightening.