Small Business Optimism Holds Steady Amid Mixed Economic Signals
The Experian Small Business Index™ rose by 3.9 points in February, reaching 45.4, marking the second consecutive month of modest gains.
February 2025
- Index Value (Jan): 45.4
- Previous Month: 41.5
- MoM: +3.9
- YoY: -8.9(Feb 2024 = 50.0)
February Index Picks Up Amid Economic Headwinds
Positive indicators for the overall economy persist: unemployment remained low at 4.1% in February, core inflation decreased to 3.1%, rent inflation dropped to 4.2%, and existing home sales increased by 4.2%. Consumer and business owner optimism began to decline, signaling uncertainty about the economy’s sustained strength. The U.S. economy added 151,000 jobs in February, higher than January. The Federal Reserve held rates steady and cautioned about slower growth and higher inflation than previously predicted.
Despite some economic headwinds and uncertainty among consumers and small business owners, small business owner optimism remains above the historical average. We continue to see remarkable levels of new business starts compared to the period just before the pandemic. The two-month increase in the index suggests that the environment for small business owners is improving, indicating their likely continued investment in their companies.
