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Small Business Optimism Index Falls to 95.3 in May
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SoHoSoCal
NFIB California in Washington, D.C., this week to lobby Congress on two important bills
From 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.”
Highlights from the May SBET Include:
- Eighteen percent 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.
- In May, reports of both actual and planned price increases rose significantly. 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. A net 34% (seasonally adjusted) plan to increase prices, up 7 points from April and marking the highest reading since July 2022.
- Sixteen percent (seasonally adjusted) 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.
- Seventy percent of small business owners reported that supply chain disruptions affected their business to some extent, up 6 points from April.
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