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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Incremental increase underscores steady operating environment even as inflation and sentiment present headwinds Mar 2026 Index Value (Mar): 49.2 Previous Month: 48.8 MoM: 0.4 YoY: 2.0 (Mar 2025 = 47.2) The Experian Small Business Index™ remained largely unchanged in March, increasing by 0.4 points to 49.2. This reflects a year-over-year increase of 2 points and indicates relative stability in small business conditions. The broader macroeconomic environment continues to present mixed signals, contributing to recent variability in the index. Conditions appeared more stable in March. The unemployment rate held steady at 4.3 percent, and wages continued to rise modestly. Gross domestic product increased by 2 percent in the first quarter and has been positive in most quarters over the past two years. Private employers added approximately 62,000 jobs in March. U.S. employers also reported 32,826 planned hires, which is an increase from 12,755 reported in February. Inflation increased to 3.3 percent in March, up from 2.4 percent in February, driven in part by higher fuel prices. Gasoline prices rose by approximately $1.00 from the end of February through the end of March, reaching an average of about $4.00 per gallon. This represents a month over month increase of 36 percent. Diesel prices rose by 46 percent compared to the prior month and are up 52 percent year over year. Consumer sentiment declined to 53.3 in March from 56.6 in February. The Small Business Optimism Index also decreased slightly to 98.8. Retail sales remained stable to slightly higher, suggesting that increased fuel costs and lower sentiment have not yet led to a significant reduction in consumer spending. New business formation remained strong, with approximately 492,000 new businesses established in March. Explore Experian Small Business Index Related Posts
The Experian Small Business Index declined in February on soft employment data. Check conditions in your State of Industry.
The Experian Small Business Index™ increased 8.5 points to 54.3 in January. This is 12.8 points higher than it was a year ago.
