NFIB Small Business Optimism Rose 3 Points to 98.8 in May

  1. Home
  2. News
  3. NFIB Small Business Optimism Rose 3 Points to 98.8 in May
NFIB Small Business Optimism Rose 3 Points to 98.8 in May

Washington, DC, June 10, 2025-The NFIB Small Business Optimism Index increased by three points in May to 98.8, slightly above the 51-year average of 98. 

Expected business conditions and sales expectations contributed the most to the rise in the index. The Uncertainty Index rose two points from April to 94. Eighteen percent of small business owners reported taxes as their single most important problem, up two points from April and ranking as the top problem. The last time taxes were ranked as the top single most important problem was in December 2020.

“Although optimism recovered slightly in May, uncertainty is still high among small business owners,” said NFIB chief economist Bill Dunkelberg. “While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth.”

Key findings include:

  • A net 1% (seasonally adjusted) of owners viewed current inventory stocks as “too low” in May, up 7 points from April and the highest reading since August 2022. This was the largest monthly increase in the survey’s history.
  • The net percent of owners expecting better business conditions rose 10 points from April to a net 25% (seasonally adjusted).
  • The net percent of owners expecting higher real sales volumes rose 11 points from April to a net 10% (seasonally adjusted). This component contributed the most to the Optimism Index’s improvement.
  • Twenty-two percent (seasonally adjusted) plan capital outlays in the next six months, up four points from April and the highest reading of this year.
  • The percent of small business owners reporting labor quality as the single most important problem for business fell three points from April to 16%.
  • Fourteen percent of owners reported that inflation was their single most important problem in operating their business, unchanged from April.
  • When asked to rate the overall health of their business, 14% reported excellent (up one point), and 55% reported good (down one point). Twenty-eight percent reported the health of their business was fair (up one point) and 4% reported poor (unchanged).