WASHINGTON, May 14 (Reuters) - U.S. small-business confidence increased in April and the share of owners planning to raise prices was the smallest in a year, but persistent labor shortages continued to exert cost pressures for owners, a survey showed on Tuesday.
The National Federation of Independent Business (NFIB) said its Small Business Optimism Index rebounded 1.2 points to 89.7 last month. The index had slumped in March to the lowest level since December 2012. Despite the rebound it was the 28th straight month the index was below the 50-year average of 98.
Twenty-two percent of owners reported that inflation was their single most important problem in operating their business, down 3 points from March. The share of businesses planning price hikes dropped 7 points to 26%, the smallest since April 2023.
The proportion raising average selling prices fell three points to 25%. But the optimism over slower price increases was tempered somewhat by an elevated share of owners raising compensation. A 38% share of owners reported increasing compensation, unchanged from March.
Twenty-one percent planned to boost compensation over the next three months, also unchanged from March. The NFIB reported last week that 40% of owners reported job openings they could not fill in April, rebounding 3 points from March's lowest reading since January 2021.
