NFIB Small Business Optimism Falls to 95.3 as Price Pressures and Uncertainty Climb
Updated
Updated · Rural Radio Network · Jun 12
NFIB Small Business Optimism Falls to 95.3 as Price Pressures and Uncertainty Climb
3 articles · Updated · Rural Radio Network · Jun 12
Summary
The NFIB Small Business Optimism Index slipped 0.6 points in May to 95.3, staying below its 52-year average of 98.0, while the Uncertainty Index rose 3 points to 91.
Rising costs drove the weaker mood: 14% of owners cited labor costs as their top problem — a survey record — and 18% named inflation, while fuel-price spikes and supply-chain disruptions added pressure.
Hiring demand also cooled. Unfilled job openings fell 5 points to 29% and a net 9% of owners planned new jobs, both the lowest readings since May 2020.
Pricing power is still being tested, with a net 36% raising selling prices and 34% planning increases, the highest readings since March 2023 and July 2022 respectively.
Investment plans weakened as well: 16% expected capital outlays in the next six months, the lowest since March 2009, signaling broader caution among small firms.