The National Federation of Independent Business (NFIB) Small Business Optimism Index grew 0.1 points in April to 95.9, but for the second consecutive month is below the 52-year average of 98.0. In addition, the Uncertainty Index remains well above its historical average of 68 at 88.
“Inflationary pressures continue to be a challenge for Main Street,” NFIB Chief Economist Bill Dunkelberg said. “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.”
Other findings include:
Labor quality was the most important problem of 18 percent of the small-business owners who participated in the NFIB survey, up 3 points from March.
The NFIB Small Business Employment Index dropped 1.2 points from March to 100.4 and is indicative of weakening in the labor market.
The Employment Index fell for the second consecutive month to 100.4 and is now below the 2025 average of 101.2 but above the historical average of 100.
The net percent of business owners who raised their average selling prices increased 5 points from March to a seasonally adjusted, net 30 percent. The historical average is net 13 percent.