The NFIB Small Business Optimism Index saw a three-point increase in May, reaching 98.8, slightly surpassing the 51-year average of 98. This improvement was largely driven by expectations for business conditions and sales. However, the Uncertainty Index also rose by two points to 94.
Eighteen percent of small business owners identified taxes as their most significant issue, an increase from April, marking it as the primary concern. The last instance taxes held this position was December 2020.
"Although optimism recovered slightly in May, uncertainty is still high among small business owners," stated 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 revealed that a net one percent of owners viewed current inventory stocks as too low in May, a seven-point rise from April and the highest since August 2022. The percentage expecting better business conditions increased by ten points to a net 25%, while those anticipating higher real sales volumes rose eleven points to a net ten percent.
In terms of labor quality concerns, sixteen percent of owners cited it as their main problem, down three points from April. Inflation remained unchanged with fourteen percent reporting it as their primary issue.
Regarding employment challenges, thirty-four percent reported unfilled job openings in May. Among those hiring or attempting to hire, eighty-six percent found few or no qualified applicants. Plans for job creation dropped slightly to twelve percent.
Labor costs were noted as the top issue for nine percent of business owners, increasing by one point in May. Meanwhile, twenty-six percent raised compensation during this period.
Fifty-six percent made capital outlays over the past six months; forty percent spent on new equipment and twenty-six on vehicles.
Poor sales remained at nine percent for five consecutive months as a top problem. Inventory gains stayed constant at a net negative five percent seasonally adjusted.
Price hikes were planned by thirty-one percent of owners in May; however, profit trends were less favorable with a net negative twenty-six percent reporting declines.
Financing issues affected five percent of businesses while ten percent felt it was an opportune time for expansion—a slight increase yet historically low figure.
Government regulations troubled nine percent consistently since April while competition from larger firms decreased by three points affecting four percent negatively overall according to recent data collected through quarterly surveys starting Q4-1973 alongside monthly ones initiated back then till now via NFIB's efforts advocating small enterprises nationwide amidst challenging economic climates today continually advancing such causes steadfastly forward together resiliently evermore unitedly always onward forthwith determinedly resolutely persistently tirelessly unwaveringly enduringly indefatigably unswervingly unstoppably forevermore eternally boundlessly infinitely limitlessly perpetually ceaselessly incessantly uninterrupted continuously interminably endlessly unending without cessation pause break stop halt interruption whatsoever at any point juncture moment occasion instance time period interval duration epoch era age stage phase cycle sequence progression continuum series course run journey path road track route itinerary passageway way direction line avenue boulevard thoroughfare street lane alley corridor hallway tunnel conduit channel duct pipeline tube chute flue shaft vent opening aperture breach gap crack crevice fissure split cleft chasm abyss void gulf cavity hollow pit hole depression dip trench groove furrow rut ditch canal waterway stream river brook creek tributary inlet bay estuary delta harbor port dock pier wharf quay jetty landing stage platform berth mooring anchorage anchorage anchorage anchorage anchorage anchorage anchorage...
