The NFIB Small Business Optimism Index fell 0.6 points in May to 95.3, remaining below its 52-year average of 98.0. The Uncertainty Index rose 3 points from April to 91, remaining well above its historical average of 68.

Key Findings

The Employment Index remained essentially flat in May, registering 100.3. A seasonally adjusted 29% of small business owners reported job openings they could not fill in May, down 5 points from April and marking the lowest level since May 2020.

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.”

NFIB Illinois State Director Noah Finley added, “Inflation, taxes, and market uncertainty continue to dampen Main Street sentiment. Small business owners are wrestling with supply chain disruptions and higher labor costs, forcing many of them to raise their own prices.”

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