US Small Business Optimism Falls to 14-Month Low in May
The NFIB Small Business Optimism Index dropped 0.6 points to 95.3 in May, the lowest since October 2024, as expectations for better conditions and expansion plans hit multi-month lows.
The NFIB Small Business Optimism Index fell 0.6 points in May to 95.3, marking the lowest reading since October 2024. Year-to-date, the index has declined 4.2 points, already exceeding the full-year 2025 drop of 3.3 points.
Only 3% of small business owners expect better business conditions, down 21 percentage points this year and also the lowest since October 2024. Additionally, just 7% view the current period as a good time to expand, matching the same low.
Taxes, inflation, and labor costs remain the most frequently cited problems among small business owners, contributing to a bleak outlook.
Source: The Kobeissi Letter