May’s NFIB index fell short of forecasts, signaling persistent uncertainty and hiring challenges among small firms.
US small business optimism declined in May, with the NFIB index dropping 0.6 points to 95.3, missing the 96.0 estimate. The reading remains below the 52-year average of 98.0, reflecting ongoing economic caution.
The Uncertainty Index rose to 91, well above its historical average of 68, while job openings fell to 29%, the lowest since May 2020. Hiring activity stayed flat, with the Employment Index at 100.3, slightly above its long-term average.
Small businesses cited unpredictable fuel price hikes as a key challenge, complicating cost management. Despite enthusiasm around AI investment, economic pressures persist for smaller firms.