The nfib small business optimism index fell to 95.3 in May, missing the 96.0 forecast and staying below its 52-year average of 98.0.
NFIB Small Business Optimism Index Stays Below Long-term Average
The NFIB said the index dropped 0.6 points from April. Meanwhile, the Uncertainty Index rose 3 points to 91. That reading remained well above its historical average of 68.
The monthly report also showed little change in hiring sentiment. The NFIB Small Business Employment Index came in at 100.3 in May. It was below the 2025 average of 101.2, but still a bit above the historical average of 100.0.
Hiring Gaps Ease as Uncertainty Rises
The share of small business owners reporting unfilled job openings fell in May. A seasonally adjusted 29% said they had openings they could not fill. That was down 5 points from April and marked the lowest level since May 2020.
NFIB Chief Economist Bill Dunkelberg said AI investment spending has added some excitement to the economy. However, he said the overall picture is split. He added that more small business owners are dealing with sharp and unpredictable fuel price increases.
Dunkelberg said those fuel costs are harder for small firms to pass on to customers than for larger corporate rivals. The nfib small business optimism index remained below its long-run average even after the May reading.
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