The uncertainty index rose by 3 points from April to 91, remaining well above its historical average of 68.
The NFIB small business employment index remained essentially flat, registering 100.3 in May, after measuring 100.4 in April. This is the third consecutive month in which the index has declined. The current reading is below the 2025 average of 101.2 but still slightly above the historical average of 100.0.
The National Federation of Independent Business (NFIB) small business optimism index fell by 0.6 points in May to 95.3, remaining below its 52-year average of 98.
The uncertainty index rose by 3 points from April to 91, remaining well above its historical average of 68.
The NFIB small business employment index remained essentially flat, registering 100.3 in May, after measuring 100.4 in April.
In May, a seasonally-adjusted 29 per cent of small business owners reported job openings they could not fill in May—down by 5 points from April and marking the lowest level since May 2020.
A seasonally-adjusted net 9 per cent of owners plan to create new jobs in the next three months, down by 4 points from April, and also marking the lowest level since May 2020.
“AI investment spending has contributed to some excitement in the economy,” said NFIB chief economist Bill Dunkelberg in a release.
“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,” he said.
In May, 13 per cent of small business owners cited labour quality as their single most important problem—down by 5 points from April and marking the lowest level since December 2016.
Fourteen per cent of business owners reported labour costs as their single most important problem—up by 5 points from April and the highest reading in the survey’s history.
Sixteen per cent of such owners plan to make capital outlays in the next six months—down by 1 point from April and the lowest level since March 2009.
Reports of supply chain disruptions picked up in May, with a shift from those reporting no disruptions to those reporting mild or moderate disruptions. Seventy per cent of small business owners reported that supply chain disruptions affected their business to some extent—up by 6 points from April.
In May, reports of both actual and planned price increases rose significantly. The net per cent of owners raising average selling prices rose 6 points from April to a net 36 per cent, marking the highest reading since March 2023.
A net 34 per cent plan to increase prices, up 7 points from April and marking the highest reading since July 2022.
Eighteen percent of business owners cited inflation as their single most important business problem—up by 2 points from April and marking the highest reading since December 2024. Inflation ranks as the second top problem.
Fibre2Fashion News Desk (DS)
