US Small Business Sentiment Rebounds in May

The NFIB Small Business Optimism Index in the US increased to 98.8 in May 2025, the highest in three months, compared to 95.8 in April and forecasts of 95.9.

"Although optimism recovered slightly in May, uncertainty is still high among small business owners.

While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth", NFIB Chief Economist Bill Dunkelber said.

Eighteen percent of small business owners reported taxes as their single most important problem, up two points from April and ranking as the top problem.

The last time taxes were ranked as the top single most important problem was in December 2020.

In addition, the net percent of owners expecting better business conditions rose 10 points from April to 25%.

Fourteen percent of owners reported that inflation was their single most important problem in operating their business, unchanged from April.