US: Business is booming on Main Street - Wells Fargo

The Small Business Optimism Index remained elevated in April. According to analysts from Wells Fargo, labor shortages remain a top concern, as small businesses strive to meet demand.

Key Quotes:

“The National Federation of Independent Business (NFIB) Small Business Optimism Index rose slightly in April to 104.8 and remains at a very strong level. The net share of firms reporting rising earnings is at its highest level of the survey.”

“With the economy growing solidly, business owners have more pricing power. The survey’s gauge of price increases edged down in April but remain at its second highest this cycle. One third of firms increased compensation, which is the highest since 2000.”

“The share of small business owners stating that finding skilled workers is the top business concern rose to match the cycle high of 22 percent from 21 percent last month. The share of small businesses with job openings they were unable to fill held steady at its cycle high of 35 percent.”