The National Federation of Independent Business Small Business Optimism Index edged up 0.1 points in April to 95.9, remaining below its 52-year average of 98.0 for the second consecutive month, according to the NFIB’s monthly survey released Friday, May 15.
The NFIB Uncertainty Index fell 4 points from March to 88, though it remains well above its historical average of 68.
NFIB Iowa State Director Logan Shine said conditions in the state have stalled.
“Small business optimism in Iowa remains stuck in neutral,” Mr. Shine said. “While the national index saw a small increase, the reality here is that inflation and rising gas prices are hurting sales and are making it nearly impossible for our local shops to find a footing.”
“Inflationary pressures continue to be a challenge for Main Street,” added NFIB Chief Economist Bill Dunkelberg. “While small business optimism is currently fragile, the benefits of the Working Families Tax Cut Act should start to feed into the private sector over the next few months.”
Labor quality ranked as the top concern among survey respondents, with 18% of small business owners citing it as their single most important problem, up 3 points from March and above the historical average of 12%. Nine percent cited labor costs as their top concern, down 1 point from March.
The NFIB Small Business Employment Index fell 1.2 points from March to 100.4, its second consecutive monthly decline. The reading remains slightly above the historical average of 100.0 but below the 2025 average of 101.2.
Fifty-three percent of owners reported hiring or trying to hire in April, up 1 point from March, but 46% of owners — representing 87% of those hiring or attempting to hire — reported few or no qualified applicants for open positions. A seasonally adjusted 34% reported job openings they could not fill, up 2 points from March and above the historical average of 24%.
Looking ahead, a seasonally adjusted net 13% of owners plan to create new jobs in the next three months, up 1 point from March.
Price pressures intensified. The net percent of owners raising average selling prices rose 5 points from March to a net 30% (seasonally adjusted), well above the historical average of net 13%. A net 27% plan to increase prices over the next three months, up 3 points from March.
Sixteen percent of owners cited inflation as their single most important business problem, up 2 points from March, placing it third among top concerns behind labor quality and taxes.
Sales trends weakened. A seasonally adjusted net negative 8% of owners reported higher nominal sales in the past three months, down 3 points from March. The net percent expecting higher real sales volumes over the next quarter fell 4 points to a net 3%, the lowest reading in 12 months.
Expected business conditions also deteriorated, with the net percent of owners anticipating improvement falling 7 points from March to a net 4% — the fourth consecutive monthly decline and the lowest level since October 2024. Seven percent of owners reported that April was a good time to expand their business, down 4 points from March and also the lowest since October 2024.
The frequency of reports of positive profit trends rose 6 points from March to a net negative 19% (seasonally adjusted). Among owners reporting lower profits, 33% attributed the decline to weaker sales, 15% to seasonal change, and 13% to rising material costs.
Sixty-four percent of small business owners reported that supply chain disruptions affected their business to some degree in April, up 2 points from March. Of those, 5% reported a significant impact, 19% a moderate impact, and 40% a mild impact.
On credit conditions, the average interest rate paid on short-maturity loans was 8.3% in April, up 0.4 points from March. Twenty-two percent of owners reported borrowing regularly, down 2 points from March and the lowest level since November 2021.
Fifty-one percent of owners reported capital outlays in the last six months, unchanged from March, though actual capital expenditure levels have declined 9 points since the beginning of the year and remain below the historical average.
When asked to rate their overall business health, 12% of owners described it as excellent, 55% as good, 29% as fair, and 4% as poor.
The NFIB Research Center has collected Small Business Economic Trends data through quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. Survey respondents are randomly drawn from NFIB’s membership. This survey was conducted in April 2026.
