The Small Business Optimism Index fell by 1.6 points in April to 95.8, the second consecutive month below the 51-year average of 98. Of the 10 Optimism Index components, three increased, six decreased, and one was unchanged. Expected business conditions and unfilled job openings contributed the most to the decline in the Index. The Uncertainty Index fell 4 points from March to 92.
A seasonally adjusted net 13% of owners plan to create new jobs in the next three months, up 1 point from March. Overall, 56% reported hiring or trying to hire in April, up 3 points from March. The percentage of owners thinking it’s a good time to expand was 9% unchanged from March. 34% of all owners reported job openings they could not fill in the current period, down 6 points from March. The difficulty in filling open positions is particularly acute in the construction, transportation, and manufacturing industries. Openings were the lowest in the finance and agriculture industries.
A net negative 8% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, up 3 points from March. The net percent of owners raising average selling prices fell 1 point from March to a net 25% seasonally adjusted. 14% of owners reported that inflation was their single most important problem in operating their business (higher input costs), down 2 points from March and the lowest reading since September 2021
The net percent of owners expecting higher real sales volumes fell 4 points from March to a net negative 1% (seasonally adjusted). Among owners reporting lower profits, 38% blamed weaker sales, 14% cited usual seasonal change, 11% cited the rise in the cost of materials, 9% cited the price change from their product or service, and 8% cited labor costs.
A net 5% reported their last loan was harder to get than in previous attempts, down 1 point from March. 3% reported that financing and interest rates were their top business problem in April, unchanged for the fourth consecutive month. A net 6% of owners reported paying a higher rate on their most recent loan, up 2 points from March.
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