The National Federation of Independent Business Optimism Index reached 100.7 in April, its highest reading since early 2023. Small business owners cited stronger sales expectations and improving credit conditions as the primary drivers of the improved sentiment. The hospitality, construction, and professional services sectors reported the most positive outlooks.
Cost pressures remain significant despite the improved mood. Seventy-two percent of small business respondents reported that labor costs were their most pressing concern, followed by insurance expenses and commercial rent. Business owners in states with higher minimum wages reported greater difficulty absorbing labor cost increases than those in lower-wage states, highlighting the geographic variation in small business conditions.
