The National Federation of Independent Business’s Small Business Optimism Index slipped 0.6 points in May to 95.3, data released last week showed, marking the lowest reading since October 2024 and erasing nearly all of the gains recorded after the November election.
The December 2024 reading had hit a six-year high following President Donald Trump’s re-election, according to Bloomberg. The subsequent five-month decline has brought the index back to levels seen before the post-election surge.
Owners surveyed by NFIB identified taxes, inflation and the cost of labor as their primary concerns. A significant share of respondents — 29% — reported difficulty filling open positions, according to the organization’s data.
MSI reported on June 9 that small-business confidence had ticked down in May, citing an earlier NFIB reading. The new data showing the index falling to 95.3 confirms the downward trend, with the measure now at its lowest point in 19 months.
The Guardian issued a callout on June 16, asking small business owners across the U.S. to share how they are adapting to the current economic climate, including the challenges posed by persistent inflation. The callout followed the release of the NFIB data.