NFIB’s May Small Business Economic Trends report demonstrated some challenging trends for Main Street. Small business optimism declined 0.6 points to 95.3, below the historical average of 98. The Index remains below the 52-year average for the third consecutive month. Small business uncertainty increased by three points, as Main Street businesses begin pulling back on hiring.

Small Business by the Numbers, the NFIB Research Center’s podcast, released a new episode discussing key findings in the latest report. Hosts Holly Wade and Peter Hansen explore areas where small businesses are struggling, including price increases and employment challenges.

Key findings in May’s report include:

• Significant and unpredictable hikes in fuel prices and a weaker employment picture contributed to the decrease in optimism. 

• The Uncertainty Index increased three points to 91, far above the historical average of 68. Uncertainty for business owners remains high, while fuel costs and inflation remain unpredictable. 

• Job openings and hiring plans fell to their lowest point since May 2020, confirming that Main Street businesses are scaling back on business investments. 

• Labor costs rose five points as the single most important problem for small business owners to the highest level in the survey’s history.  

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 2026.