Small-business index rebounds in April

Small business owners grew increasingly confident in April, as a key industry index rebounded to its highest point in more than four years.

The National Federation of Independent Business index for small optimism hit 94.5 in April, a two-point increase over March. That level matches the index reading from February 2011, and marks the highest score since December 2007.

Still, even as it found strong gains in business sales and profits, NFIB also downplayed the April gains, saying the index was still “historically weak” and noting that the report essentially meant there had been no gains in the last year or so.

“No surprise, since nothing much happened during that time that would make owners more optimistic about the future,” the report said. 

Bill Dunkelberg, the NFIB’s chief economist, also noted that there were more than a couple factors – the European debt crisis and soaring deficits, among them – that could remain a drag on business confidence. 

The most recent index comes on the heels of a disappointing March jobs report, with employers adding 115,000 jobs, and as the economy remains the central issue in the likely November matchup between President Obama and Mitt Romney.

“With the election six months away, the Index will signal how small firm owners see the economy’s future unfolding — and their outlook will be telling,” Dunkelberg said. 

In addition to the strong sales and profits figures, the index also found gains for job openings and capital spending. NFIB also cautioned that small business owners may have to worry about inflation in the coming months.

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