In May 2025, the NFIB Small Business Optimism Index in the United States climbed to 98.8, marking the highest level in three months. This was an increase from the April figure of 95.8 and exceeded forecasts, which predicted a rise to 95.9. Despite this slight recovery in optimism, small business owners continue to face significant uncertainty, as noted by NFIB Chief Economist Bill Dunkelberg. He remarked, "While optimism saw a modest recovery in May, the level of uncertainty among small business owners remains elevated. The economy will persist in its sluggish trajectory until the primary sources of uncertainty are resolved. Nonetheless, owners have expressed more favorable expectations regarding business conditions and potential sales growth."
Taxes emerged as the predominant concern for 18% of small business owners, an increase of two percentage points from April, making it the foremost issue currently. The last instance when taxes were rated as the principal concern was in December 2020. Additionally, the percentage of owners anticipating improved business conditions saw a significant rise, moving up 10 percentage points from April to 25%. Meanwhile, 14% of owners identified inflation as their chief challenge in managing their businesses, a figure that has remained steady since April.
