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.
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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
