For the first time this year, the US small business confidence index increased slightly in April, hitting 89.7. For the 28th consecutive month, it is still below the 50-year average of 98. Although it is down three points from March, small business owners still consider inflation to be their main concern (22%).
The main conclusions of the NFIB survey indicate that the net proportion of owners expecting stronger real sales has increased by six points, to a net negative 12 percent. Furthermore, a net 12 percent of owners intend to add additional employees within the following three months. Plans for price increases decreased to a net 26 percent, but the percentage of unfilled jobs increased to 40 percent.
Mixed patterns have been seen in sales; over the last three months, a net negative 13 percent of owners reported increasing nominal sales. But the net percentage of respondents who foresee better real sales volumes has gone from a net negative 12 percent to a net negative 6 points. Additionally, there was a net negative 6% increase in inventory levels, with more owners reporting stock reductions than increases. Regarding pricing, 13% of owners reported reduced average selling prices.
With a net 38 percent of owners reporting increased remuneration and a net 21 percent indicating plans to increase compensation within the next three months, compensation trends in April stayed steady. One of the main concerns expressed by owners was labor prices, with 11% identifying it as their main concern and 19% mentioning labor quality as an issue.
Small business owners’ financing stayed steady, with 3% indicating that their borrowing demands weren’t met. Out of those who indicated their credit criteria were met, 28% said they were not interested in getting a loan. 8% said it was more difficult to get their most recent loan, and 4% said funding was their biggest issue as a firm.
