The NFIB Research Center has released its quarterly Small Business Economic Trends survey, focusing on the construction, manufacturing, retail, and services industries. The report indicates a decline in the Optimism Index across these sectors compared to the previous quarter. Despite this overall decrease, optimism in construction, manufacturing, and services remains higher than that of the broader business community as of April. However, small retailers show significantly lower optimism compared to other industries.
Holly Wade, Executive Director of NFIB’s Research Center, commented on the findings: “Small business optimism declined in all four industry sectors, but most notably among small retailers and manufacturers largely due to more pessimistic views about future business conditions, supply chain disruptions, and ongoing labor quality concerns.” She added that "at least 60 percent of small firms across all industries consider their business in excellent or good health."
In April, the overall Optimism Index was recorded at 95.8.
Key findings for each industry include:
**Construction:** The Optimism Index for construction was 100.9 in April, a decrease of 3.9 points from January. This sector showed the smallest change among all reported industries and had the highest level of optimism with an index reading 5.1 points above that for all firms. A significant number (55%) of businesses reported unfilled job openings.
**Manufacturing:** The manufacturing industry's Optimism Index stood at 6 in April after falling by 6.8 points since January—the largest drop among all sectors surveyed. Earnings trends improved significantly by 21 points from January despite a decline in expectations for real sales.
**Retail:** Retail experienced a decline of 6.4 points in its Optimism Index to reach 93.7—the lowest among the four sectors and below that of the overall small business community. Hiring plans were also minimal within this sector.
**Services:** The services industry saw its Optimism Index fall by 4.5 points to 98.6 due to a weaker outlook on general business conditions. Nevertheless, hiring plans increased slightly from January.
The full report is available for further details.
