Small Business Optimism Edges Down in April

Wells Fargo Research Team Wells Fargo

Small business optimism fell a slight 0.2 points to 104.5 in April. The decline was led by a sizable 8-point plunge in owners' expectations for future business conditions. Despite the dip, confidence remains high.

NFIB Moves on Fiscal Policy Volatility

The NFIB Small Business Optimism Index fell 0.2 points to 104.5 in April. The decline was led by a drop in expectations for improvement in the economy, which fell 8 points following the initial unsuccessful attempt to replace the Affordable Care Act. The House passed a bill last week that would repeal Obamacare and replace it with something similar but possibly less onerous to small businesses.

NFIB Index Holds on to Recent Gains

Most of the NFIB's components held on to recent gains, as sales trends remain intact and more firms increased employment.
Consistent with a tightening labor market, hard to fill job openings edged up to 33 percent in April. The gain marks the highest level since November 2000. The share of owners reporting "finding qualified labor" as their most important problem is also trending near its previous cycle high.

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Wells Fargo Research Team

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