The NFIB Small Business Optimism Index came in at 95.9 in April - up just 0.1 points from March, and below its 52-year average of 98.0 for the second straight month.

That headline number is relatively stable. What's happening underneath it is more interesting.

Prices Are Going Up. Fast.

A net 30% of small business owners raised their average selling prices in April. That's up 5 points from March and well above the historical average of net 13%.

Translation: nearly one in three small businesses is actively passing costs to customers right now - at roughly twice the historical rate.

Looking forward, a net 27% plan to raise prices further in the next three months, up another 3 points from March.

That's a pricing environment that compounds. Each business raising its prices contributes to the cost pressures on every other business it supplies or serves.

But Optimism About Expansion Is at an 18-Month Low

Here's the tension: while prices are rising, business owners are less confident about growth than at any point since October 2024.

Only 7% of respondents said May is a good time to expand - down 4 points from March. That's the lowest reading since October 2024.

Expected business conditions also fell 7 points from March to a net 4% positive. That was the fourth consecutive monthly decline.

Sales are softening too. A net negative 8% reported higher nominal sales in the past three months - down 3 points from March. Expected real sales volumes over the next quarter hit their lowest level in 12 months.

What's the Disconnect?

Raising prices and dimming your growth outlook at the same time suggests small business owners are in defensive mode. They're protecting margins - raising prices to cover higher costs - but they don't believe conditions will improve soon enough to warrant bigger bets.

The Uncertainty Index came in at 88, down 4 points from March but still far above its historical average of 68. Owners are less certain today than they've been in most of the last decade.

The Labor Signal Is Mixed

Labor quality remained the top problem cited by business owners - 18% named it their single biggest issue, up 3 points from March. That's above the historical average of 12%.

Yet 53% reported hiring or trying to hire in April. Of those, 87% still can't find qualified applicants.

Job openings that small businesses cannot fill sit at 34% - above the historical average of 24%.

Net new job creation plans ticked up 1 point to 13%, slightly above the long-run average of 11%. So hiring intent is holding. The pipeline just isn't there.

The Number to Watch

NFIB Chief Economist Bill Dunkelberg pointed to the Working Families Tax Cut Act as a potential positive for the months ahead. Whether those benefits translate into confidence numbers will show up in the May and June surveys.

For now: small businesses are raising prices to stay afloat, pulling back on expansion plans, and finding qualified workers just as elusive as ever.

Source: NFIB, Small Business Economic Trends - April 2026, released May 12, 2026.