NFIB Small Business Optimism Index Retreats in April

On Tuesday, the National Federation of Independent Business (NFIB), one of the largest small business associations in the US, released its Small Business Optimism Index (SBOI) for April.

The SBOI declined 1.6 points to a reading of 95.8 in April, remaining below the 51-year average of 98 for the second consecutive month. The Uncertainty Index decreased 4 points to a reading of 92 but remained far above the historical average of 68.

Seasonally adjusted, 34% of business owners reported job openings they could not fill in April, down 6 points from March. The last time job openings were below this level was in January 2021.

The net percent of owners expecting better business conditions fell 6 points from March to a net 15% (seasonally adjusted), the lowest since last October. This component, along with unfilled job openings, contributed most to the Index’s decline.

Commenting on the report, NFIB Chief Economist Bill Dunkelberg said:

“Uncertainty continues to be a major impediment for small business owners in operating their business in April, affecting everything from hiring plans to investment decisions. While owners are still trying to fill a high number of current job openings, their outlook on business conditions is less supportive of future business investments.”