US Small Business Optimism Plummets to 10-Year Low Amid Economic Uncertainty

Small business sentiment fell in April to the lowest level in 10 years, with fears over the near-term economic outlook, persistent worker shortages, and chronic inflation. Small businesses are also pessimistic about the future, with the share of owners expecting better business conditions over the next six months falling to a net negative 49%. Worker quality continued to pose the biggest threat to small businesses in April, as historically low unemployment and rapid wage increases made it harder for the owners of these firms to compete with big companies and hire employees. However, businesses reported little difficulty in accessing credit.