US small business optimism declines for fourth consecutive month

The National Federation of Independent Business (NFIB) optimism index in the United States fell by 1.6 points to 95.8 in April, the lowest level since last October. This marks the index's fourth consecutive decline, Bloomberg reports. One contributing factor was a decrease in job openings, according to the agency. Additionally, small business sentiment was affected by Donald Trump’s policies.

A more detailed report from the organization shows a 6-percentage-point drop in the share of entrepreneurs expecting business conditions to improve over the next six months compared to March. Sales forecasts for April fell by 4 percentage points, while capital spending plans declined by 3 points, hitting a five-year low, Bloomberg reports.

The impact of business sentiment on the American labor market should be mentioned separately. Demand for labor weakened, though 34% of respondents still noted staffing shortages. The number of companies reporting an increase in wages or their willingness to do so in the future also reduced.

NFIB chief economist Bill Dunkelberg stated that the April results worsened the outlook for future investment in US small business development.