A monthly measure of confidence among small business owners continues to decrease even as concerns increase over sales, earnings and vacant job openings.

The National Federation of Independent Business reported its Small Business Optimism Index fell 1.1 points to 89 in April. The index has remain below its nearly 50-year average reading of 98 for 16 straight months.

“Optimism is not improving on Main Street as more owners struggle with finding qualified workers for their open positions,” said Bill Dunkelberg, chief economist of the NFIB. “Inflation remains a top concern for small businesses, but is showing signs of easing.”

The NFIB bases the index on the results of monthly surveys of members of the small business advocacy group, most of them small business owners.

Between March and April, six of 10 components of the index retreated and four advanced.

The proportion of NFIB members responding to the survey upon which the April index was based who expect the economy to improve fell two points. At a net negative 49 percent, more respondents anticipated worsening conditions.

The proportion of members who said they expect increased sales fell four points. At a net negative 19 percent, more anticipated decreased sales.

Expectations for earnings dropped five points to a net negative 23 percent.

Among those reporting lower profits, 29 percent blamed weaker sales and 20 percent cited higher materials costs. Among those reporting higher profits, 51 percent credited higher sales volume and 16 percent cited higher prices.

A net 17 percent of respondents reported plans to increase staffing, up two points. But a net 45 percent reported hard-to-fill job openings, also up two points.

Asked to identify their single most important problem,
24 percent cited quality of labor. That was just ahead of the 23 percent who cited inflation.

A net 40 percent of those who responded reporting raising compensation. A net 21 percent expect to raise compensation in the next three months.

A net 19 percent reported plans for capital outlays, down a point from March. A net 3 percent said they consider now a good time to expand, up a point.

The proportion of respondents planning to increase inventories fell a point to a net negative 5 percent. The share of those who said current inventories were too low fell six points to a net negative 5 percent.