US small business optimism falls for fourth month
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The news: Small business confidence in the US fell for the fourth month running in April, as owners reporting job openings declined to the lowest level in over four years.
The numbers: The National Federation of Independent Business (NFIB)’s Small Business Optimism Index declined by 1.6 points in April to 95.8, its second consecutive month below the 51-year average of 98.
The NFIB Uncertainty Index fell four points from March to 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 six points from March. The last time job openings were below this level was in January 2021.
The context: The index hit a peak following President Trump’s election in December last year, but has been on a descent since then as his chaotic trade policies dragged on the economy.
“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,” said NFIB chief economist Bill Dunkelberg. “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.”
Labor quality was cited as the single most important problem for business in April was unchanged from March at 19%, remaining the top issue for the third consecutive month. Taxes, inflation and the cost of insurance are were ranked as the next most pressing concerns for small business owners.
The share of small business owners expecting better business conditions fell 6 points to 15% in April. "This component, along with unfilled job openings, contributed the greatest to the Optimism Index's decline," explained Dunkelberg.
The source: National Federation of Independent Business
