Despite inflation leading to cost pressures, small business owners remain focused on serving their customers. The Small Business Optimism Index saw a slight increase of 1.2 points in April, marking the first increase of 2024, but still remains below the 50-year average for the 28th consecutive month. Bill Dunkelberg, NFIB Chief Economist, notes that small business owners are raising compensation levels to attract and retain employees, with cost pressures being a major concern.
According to the report, small business owners’ expectations for better business conditions over the next six months improved by six points from November to a net negative 36%. Additionally, a net 29% of owners plan to raise compensation in the next three months while the net percent of owners raising average selling prices remained unchanged at a net 25%. The reversal in trend was seen in the April jobs report as owners’ plans to fill open positions increased by one point from March with a seasonally adjusted net 12% planning to create new jobs in the next three months.
The full Small Business Economic Trends report and NFIB Jobs Report are available for further analysis.
