Small Business Optimism Inched Up 0.1 Point in April

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Small Business Optimism Inched Up 0.1 Point in April

Washington, DC, May 12, 2026-The NFIB Small Business Optimism Index rose 0.1 points in April to 95.9, below its 52-year average of 98.0 for the second consecutive month. The Uncertainty Index fell four points from March to 88, remaining well above its historical average of 68.

“Inflationary pressures continue to be a challenge for Main Street,” said NFIB chief economist Bill Dunkelberg. “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.”

Key findings include:

  • The Employment Index fell in April, from 101.6 to 100.4. This is the second consecutive month of decline. The current reading is now below the 2025 average of 101.2 but still slightly above the historical average of 100.0.
  • In April, reports of both actual and planned price increases rose. The net percent of owners raising average selling prices rose five points from March to a net 30% (seasonally adjusted), well above its historical average of net 13%. Looking forward to the next three months, a net 27% (seasonally adjusted) plan to increase prices, up three points from March.
  • In April, 18% of small business owners cited labor quality as their single most important problem, up three points from March and ranking as the top problem.
  • A seasonally adjusted net negative 8% of all owners reported higher nominal sales in the past three months, down three points from March. Sales are weakening.
  • The net percent of owners expecting higher real sales volumes over the next quarter fell four points from March to a net 3% (seasonally adjusted), the lowest reading in 12 months.
  • The frequency of reports of positive profit trends rose six points from March to a net negative 19% (seasonally adjusted).
  • In April, a net 2% of owners reported paying a higher interest rate on their most recent loan, up five points from March.
  • Twenty-two percent of all owners reported borrowing regularly, down two points from March and the lowest level since November 2021.
  • The net percent of owners expecting better business conditions fell seven points from March to a net 4% (seasonally adjusted). This was the fourth consecutive monthly decline in expected business conditions and the lowest level since October 2024.
  • In April, 7% (seasonally adjusted) reported that it is a good time to expand their business, down four points from March and the lowest level since October 2024.