The NFIB Small Business Optimism Index dropped -1.6 pts to 95.8 in April as the small business economic outlook continues to slide.

• The net percent of respondents expecting better business conditions fell -6 pts to 15, the lowest since the 2024 election and down from a peak of 52 in December 2024.
• Readings of hard data did improve even though optimism soured. The Actual Earnings and Actual Sales indexes both increased, up 7 pts to -21 and up 3 pts to -8, respectively.

• The price indexes both eased slightly but remain elevated historically. The Actual Price Changes index fell -1 pt to 25, and the Price Plans index fell -2 pts to 28. Neither readings are 2025 lows.

• The Actual Employment index improved back to positive, up 2 pts to 1, but there is still very little strength in small business hiring. The Job Openings index signaled weaker hiring demand as the index fell -6 pts to 34, the lowest since September 2024.
• Indicators of wage growth weakened, especially in the Compensation Plans index which fell -2 pts to 17, the weakest since March 2021.

• Short-term interest rates remained elevated for small businesses as the NFIB found no change in rates in April compared to March with another 8.9% reading.