January 2025
- Index Value (Jan): 41.5
- Previous Month: 40.5
- MoM: +1.0
- YoY: -8.5(Jan 2024 = 50.0)
January 2025 Summary
The Experian Small Business Index™ increased by 1 point in January to 41.5, following a decline in December to 40.5. Despite this modest improvement, the index is down 8.5 points year over year, reflecting ongoing challenges for small business owners. Consumer confidence has dipped, unemployment remains low at around 4% and wages continue to increase, helping to maintain consumer spending. Rent inflation has eased somewhat and mortgage rates have dipped slightly, contributing to the overall stabilization of the market, though uncertainty remains.
Business confidence has decreased slightly but continues to stay above the 51-year average, signaling cautious optimism among business owners. Retail sales have remained relatively stable, after rising consistently over the past few years. Consumer delinquency rates are beginning to stabilize, which should pave the way for lenders to shift their focus towards growth in the coming months.The pace of credit tightening has eased and there are indications that some lenders may begin easing standards, which should help small business owners get the funding they need to grow their businesses.
These factors indicate that while small businesses are navigating a complex economic landscape, there are signs of potential recovery and growth ahead. The Experian Small Business Index™ will continue to monitor these trends and capture the evolving challenges and opportunities for small business owners as they seek to access credit and maintain positive cash flow.
