The NFIB Small Business Optimism Index rose above the 51-year average in May with better expected business conditions and sales as the greatest contributors to the increase. The Uncertainty Index also increased two points from April to 94. Taxes remain the chief concern for small business owners, with 18% ranking it as their biggest problem.   

“Although optimism recovered slightly in May, uncertainty is still high among small business owners,” said NFIB Chief Economist Bill Dunkelberg. “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.”  

Key findings include: 

• Optimism increased three points in May to 98.8, just above the 51-year average of 98.  

• Taxes are the biggest concern for small business owners in May, rising two points from April.  

• A net 1% (seasonally adjusted) of small business owners viewed current inventory stocks as “too low” in May, up 7 points from April and the highest reading since August 2022. This was the largest monthly increase in the survey’s history.  

• Uncertainty remains high, climbing two points from April.  

• Owners expecting better business conditions rose 10 points in May to a net 25% (seasonally adjusted).  

• The net percent of owners expecting higher real sales volumes rose 11 points in May to a net 10% (seasonally adjusted), which was the greatest contributor to the increased optimism. 

• The percentage of small business owners reporting labor quality as the most important issue fell three points from April to 16%. 

• Inflation remained an important concern for small business owners, with 14% ranking it as their highest issue for the month, unchanged in May.  

As seen in NFIB’s Monthly Job Report, 34% (seasonally adjusted) of small business owners reported unfilled job openings in May, steady with April’s numbers and the lowest since January 2021. With 55% of owners hiring or trying to hire in May, 86% of those hiring owners reported few or no qualified applicants for positions they were trying to fill.  

Taxes have surged to claim the single biggest concern for business owners in May, rising two points from April to 18%. The percentage of small business owners reporting poor sales as their top business concern remained at 9% for the fifth consecutive month. A net negative 13% (seasonally adjusted) of owners reported higher nominal sales in the past three months, down five points from April. 

The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. Survey respondents are randomly drawn from NFIB’s membership. The report is released on the second Tuesday of each month. This survey was conducted in May 2025.