The National Federation of Independent Business (NFIB) released its monthly Small Business Economic Trends report, which shows a decline in optimism among small business owners. The report, which has been collected since 1973, found that the Small Business Optimism Index fell 0.6 points in May to 95.3, remaining below its 52-year average of 98.0.

Key Findings

The report highlights several key findings, including that 18% of business owners cited inflation as their single most important business problem, up 2 points from April and marking the highest reading since December 2024. Additionally, the net percent of owners raising average selling prices rose 6 points from April to a net 36% (seasonally adjusted), marking the highest reading since March 2023.

The report also found that 16% of small business owners plan to make capital outlays in the next six months, down 1 point from April and the lowest level since March 2009. Furthermore, 70% of small business owners reported that supply chain disruptions affected their business to some extent, up 6 points from April.

According to NFIB Chief Economist Bill Dunkelberg, “AI investment spending has contributed to some excitement in the economy. Despite the enthusiasm around AI, the overall picture is divided. More small business owners are struggling with significant and unpredictable hikes in fuel prices, which are more challenging for small businesses to pass on to their customers compared to their larger corporate competitors.”

Original reporting: NFIB (National Federation of Independent Business) — read the source article.