The National Federation of Independent Business (NFIB) has released the small business confidence index for April, indicating a positive shift in sentiment. The index rose by 1.1 points to 89.0, marking a notable change from previous months.
The confidence index had been on a steady decline for 16 consecutive months, dropping below the average level of 98, which has been the standard for the past 49 years. However, April’s results have brought some much-needed positivity to the small business community.
The index had been under pressure due to concerns about an economic recession, stemming from the Federal Reserve’s interest rate increase and the ongoing labor shortage. Business owners had been expressing reduced confidence in the economy over the next six months.
According to NFIB President Brad Close, “Small business owners are seeing a glimmer of hope that the worst may be behind them. As states reopen, NFIB is optimistic that Main Street’s recovery will continue at a solid pace.”
The small business confidence index is considered an important indicator of the overall health of the US economy, as small businesses make up a significant portion of the country’s economic activity. The positive shift in April’s index could be a sign of more good news to come for the US economy.