Small Business Optimism Rebounds in April

After an unexpected slump in March's NFIB Small Business Optimism Index, the long-running survey bounced back up more than two points in May. With a return to a range considered historically optimistic, NFIB researchers indicate they believe the March figures were a "fluke." Among the highlights found in the April numbers: Profit trends and sales gains moved to historically high levels, capital spending was strong, inventories appeared lean and labor-market indicators, especially job creation plans, surged to wipe out March declines. One troubling sign: Inflation, "forecasted by a 9-point spike (seasonally adjusted) in the net percent of firms raising average selling prices."