The National Federation of Independent Business (NFIB) Small Business Optimism Index rose 0.1 points in April to 95.9, below its 52-year average of 98.0 for the second consecutive month. The Uncertainty Index fell 4 points from March to 88, remaining well above its historical average of 68.
“Inflationary pressures continue to be a challenge for Main Street,” said Bill Dunkelberg, chief economist for NFIB. “While small business optimism is currently fragile, the benefits of the Working Families Tax Cut Act should start to feed into the private sector over the next few months.”
Key findings include:
- The Employment Index fell in April, from 101.6 to 100.4. This is the second consecutive month of decline. The current reading is now below the 2025 average of 101.2 but still slightly above the historical average of 100.0.
- In April, reports of both actual and planned price increases rose. The net percent of owners raising average selling prices rose 5 points from March to a net 30 percent (seasonally adjusted), well above its historical average of net 13 percent. Looking forward to the next three months, a net 27 percent (seasonally adjusted) plan to increase prices, up 3 points from March.
- In April, 18 percent of small business owners cited labor quality as their single most important problem, up 3 points from March and ranking as the top problem.
- A seasonally adjusted net negative 8 percent of all owners reported higher nominal sales in the past three months, down 3 points from March.
- In April, a net 2 percent of owners reported paying a higher interest rate on their most recent loan, up 5 points from March.
- Twenty-two percent of all owners reported borrowing regularly, down 2 points from March and the lowest level since November 2021.
- The net percent of owners expecting better business conditions fell 7 points from March to a net 4 percent (seasonally adjusted). This was the fourth consecutive monthly decline in expected business conditions and the lowest level since October 2024.
- In April, 7 percent (seasonally adjusted) reported that it is a good time to expand their business, down 4 points from March and the lowest level since October 2024.
As reported in NFIB’s monthly jobs report, the NFIB Small Business Employment Index fell 1.2 points from March to 100.4. This decline is indicative of weakening in the labor market, though the level still suggests balance.
A seasonally adjusted 34 percent of small business owners reported job openings they could not fill in April, up 2 points from March. Unfilled job openings remain above the historical average of 24 percent. Twenty-nine percent had openings for skilled workers (up 2 points), and 13 percent had openings for unskilled labor (up 1 point).
In April, 18 percent of small business owners cited labor quality as their single most important problem, up 3 points from March and above the historical average of 12 percent. Nine percent of business owners reported labor costs as their single most important problem, down 1 point from March.
A seasonally adjusted net 30 percent reported raising compensation, down 3 points from March. A seasonally adjusted net 18 percent plan to raise compensation in the next three months, unchanged from March.
In April, 64 percent of small business owners reported that supply chain disruptions affected their business to some extent, up 2 points from March. Five percent reported a significant impact (up 2 points), 19 percent reported a moderate impact (up 2 points), 40 percent reported a mild impact (down 2 points), and 35 percent reported no impact (down 1 point).
Sixteen percent of owners reported that inflation was their single most important business problem, up 2 points from March, ranking third among the top issues.