(NFIB) The NFIB optimism index that gauges confidence among the small business owners held at 93.2 in April, the lowest in two years.
Concerns about stagflation held back the small business sentiment. About 32% of firms cited inflation as the biggest challenge, a record since 1980 but a slight increase from March.
Labor quality was cited as the second-biggest challenge, with an elevated number of firms planning compensation changes.
Small business owners also held a worsened view of the conditions over the next six months, with the share expecting an improved situation falling by one point to a record low.
With inflation running at around a four-decade high, NFIB chief economist, Bill Dunkelberg, says that small businesses are struggling with high consumer prices. Dunkelberg says the labor supply is also not responding well despite huge wage offers.
The falling sentiment happened when small business owners posted a record unfilled vacancy, with about 120,000 job outflows in April. Overall, five components making up the small business sentiment index declined in April.
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