The National Federation of Independent Business (NFIB) reported on Tuesday
its Small Business Optimism Index dropped by 1.1 points to 89.0 in April,
following a 0.8-point fall in the previous month. That was the
lowest reading since January 2013 (88.8).
According to the report, six of 10
components of the index decreased in April, while four increased. The measure of the owners that viewed current inventory stocks as “too
low” (-6 points) logged the largest drop in April. It was followed by the
gauges of the owners that reported positive profit trends (-5 points) and expected
real sales to be higher (-4 points). Meanwhile, the indicators of owners that reported
job openings were hard to fill (+2 points) and planned to create new jobs in
the next three months (+2 points) registered the biggest advances last month.
Commenting on the latest data, William Dunkelberg, NFIB Chief Economist,
noted that optimism is not improving as more small business owners struggle
with finding qualified workers for their open positions. “Inflation remains a
top concern for small businesses but is showing signs of easing,” he added.