Small Businesses are showing fiscal discipline and resilience amid changing conditions.
April 2025
- Index Value (Apr):43.2
- Previous Month:47.2
- MoM:-4.0
- YoY:-11.9(Apr 2024 = 55.1)
April marked the first month reflecting the impact of the broad tariffs announced on April 2nd. While the index experienced a decline, the decrease was modest due to the continued resilience of the U.S. economy. Unemployment remained nearly stable at 4.2%, average hourly wages continued to rise, and 30-year fixed-rate mortgages stayed below 7% for the 17th consecutive week. Additionally, the inflation rate increased by just 2.3% in April, the lowest rise since February 2021.
Some metrics showed signs of deterioration, contributing to the drop in the index. The ongoing shifts in tariff policy have created uncertainty among consumers and small business owners. Consumer sentiment fell to 52.2 in April, down from 57.0 in March and 32% lower than a year ago. Small business optimism declined to 95.8 in April, marking the second consecutive month below the 51-year average of 98. Despite these economic challenges, new businesses continued to form at high rates, with 449,508 new business applications filed in April, nearly matching March’s figures and still well above pre-pandemic levels. Additionally, tariff relief with China brought welcome news to many small businesses still reliant on those imports.
The Experian Small Business Index™ improved by 15.9 points month-over-month and 9.1 points Year-Over-Year Nov 2025 Index Value (Nov): 52.0 Previous Month: 36.1 MoM: 15.9 YoY: 9.1 (Nov 2024 = 42.9) The Experian Small Business Index™ increased substantially in November by 15.9 points to 52.0. This also represents a YoY increase of 9.1 points. There was increased business activity with the end of the government shutdown in November. Business owners saw an increase in new account openings and approval rates, along with an increased number of new business formations. Negative credit conditions improved, with reductions in delinquencies and utilization. The Small Business Optimism Index from NFIB increased to 99.0 from 98.2 in October. There was an increase in the number of new business applications to 535K from 499K in October, the most in a single month since July 2020. Inflation fell in November, to 2.7% from 3.0% in September, the lowest level since July. November unemployment was up to 4.6% from 4.4% in September. The inflation and unemployment rates are likely to influence Federal Reserve policy decisions as they consider whether additional rate cuts are warranted in 2026 after a 25 bps drop in December. Explore Experian Small Business Index Related Posts
The Experian Small Business Index™ declined in October, dropping by 5.0 points month-over-month. Oct 2025 Index Value (Oct): 36.1 Previous Month: 41.1 MoM: -5.0 YoY: -4.6 (Oct 2024 = 40.7) The Experian Small Business Index™ decreased in October by 5 points to 36.1. This drop is attributable to decreased origination activity for small businesses and small business owners, along with an increase in delinquencies for small business owners’ consumer trades. Small business trade delinquency rates have remained stable. The NFIB reported a decrease in small business optimism to 98.2 in October from 98.8 in September, and the University of Michigan reported a drop in consumer sentiment to 51.1 in November from 53.6. Due to the extended government shutdown, several of the economic indicators were not reported for October, but there were signs of positive factors in the macroeconomic environment. US employers reported hiring 283K in October, up from 117K in September, and existing home sales were up 1.2% in October to 4.1M. Explore Experian Small Business Index Related Posts
The Experian Small Business Index™ shows a modest improvement, rising 3.7 points month-over-month. Sep 2025 Index Value (Aug): 41.1 Previous Month: 37.4 MoM: +3.7 YoY: -3.8 (Sep 2024 = 44.9) The Experian Small Business Index™ increased in September by 3.7 points to 41.1, the second straight month of increases. The Fed lowered interest rates for a second time in late October in response to weakening job reports from ADP but indicated another rate cut in December is not certain due to rising inflation. Inflation increased from 2.9% to 3.0% in September, and core inflation decreased from 3.1% to 3.0%. Rent and food inflation were both steady, and energy prices increased 2.8% from a year ago. The University of Michigan’s consumer sentiment stayed nearly even as the NFIB small business optimism index fell slightly to 98.8 in September from 100.8 in August. New businesses continue to open at a historically high rate, indicating continued optimism by entrepreneurs. Explore Experian Small Business Index Related Posts
