NFIB Small Business Optimism Index Inches Higher in April

On Tuesday, the National Federation of Independent Business (NFIB) reported that its Small Business Optimism Index (SBOI) rose 0.1 points to 95.9 in April. This was 2.1 points below the 52-year average of 98 and marked the second consecutive month below the long-term average.

The NFIB Uncertainty Index fell 4 points to 92, remaining well above its historical average of 68.

Other key highlights from the April SBOI include:

• Employment: The Employment Index fell from 101.6 in March to 100.4 in April, marking the second consecutive monthly decline. The latest reading was below the 2025 average of 101.2 but slightly above the historical average of 100.0.
• Labor quality: 18% of owners cited labor quality as the single most important problem, up 3 points from March, remaining the top concern.
• Sales expectations: The net percent of owners expecting better business conditions fell 7 points to a seasonally adjusted net 4%. This marked the fourth consecutive monthly decline and the lowest level since October 2024.
• Selling prices: The net share of owners raising average selling prices rose 5 points to a seasonally adjusted net 30%, well above the historical average of net 13%. Looking ahead, a seasonally adjusted net 27% plan to increase prices over the next three months, up 3 points from March.

In remarks accompanying the release, NFIB Chief Economist Bill Dunkelberg said:

“Inflationary pressures continue to be a challenge for Main Street. 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.”