Small business optimism in US rebounds from 11-year low

By Ovunc Kutlu

ISTANBUL (AA) - Optimism among small businesses in the US rose slightly in April, bouncing back from its lowest in more than 11 years, according to a report released Tuesday.

The National Federation of Independent Business (NFIB) said its Small Business Optimism Index increased by 1.2 points in April to 89.7, from 88.5 in March when it recorded its lowest since December 2012.

The index came in higher than estimates of 88.1.

Although the index marked its first increase this year, it is the 28th consecutive month it was below the 50-year average of 98, according to the NFIB.

The report showed that 22% of owners said inflation was their single most important problem, which is down three points from March but remains the top problem for small business owners.

"Cost pressures remain the top issue for small business owners, including historically high levels of owners raising compensation to keep and attract employees," NFIB Chief Economist Bill Dunkelberg said in a statement.

"Overall, small business owners remain historically very pessimistic as they continue to navigate these challenges," he added.

The index provides an indication of the health of small businesses in the US, which account for approximately 50% of the nation's private workforce.