The Experian Small Business Index™ decline driven by relatively soft employment data
Feb 2026
- Index Value (Feb):48.8
- Previous Month:54.3
- MoM:-5.5
- YoY:3.4 (Feb 2025 = 45.4)
The Experian Small Business Index™ decreased by 5.5 points in February to 48.8. Despite the decline, the index remains 3.4 points higher than a year ago and within its historical average range. The decrease occurred during a month of relatively soft employment data. The unemployment rate rose slightly to 4.4%, and payrolls declined by 92,000 jobs in February, following a gain of 126,000 in January. Wage growth remained strong, partially offsetting these trends. Inflation indicators were mixed: core and rent inflation were flat, while food and energy prices, and the producer price index increased.
Small business formation continued to outperform the historical average, with approximately 496,000 new businesses launched in February, exceeding the seasonally adjusted average of 449,000 since July 2020. The NFIB Small Business Optimism Index edged down from 99.3 to 98.8. Credit conditions were generally stable. Commercial credit utilization and delinquencies declined, while consumer loan approvals increased. Factors contributing to the February index decrease included a decline in new consumer trades and a rise in consumer delinquencies among small business owners.
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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
