U.S. Small Business Sentiment Rebounds In April

US small-business confidence increased in April, and the share of owners planning to raise prices was the smallest in a year, but persistent labor shortages continued to exert cost pressures for owners, a survey showed, Lucia Mutikani reported for Reuters.

The National Federation of Independent Business (NFIB) said its Small Business Optimism Index (SBOI) rebounded 1.2 points to 89.7 last month.

The National Federation of Independent Business (NFIB) said its Small Business Optimism Index (SBOI) rebounded 1.2 points to 89.7 last month.

The index had slumped in March to the lowest level since December 2012. Despite the rebound, it was the 28th straight month the index was below the 50-year average of 98. Twenty-two percent of owners reported that inflation was their single most important problem in operating their business, down 3 points from March.

The share of businesses planning price hikes dropped 7 points to 26%, the smallest since April 2023.

The proportion raising average selling prices fell three points to 25%. But the optimism over slower price increases was tempered somewhat by an elevated share of owners raising compensation. A 38% share of owners reported increasing compensation, unchanged from March.