Overview
- The National Federation of Independent Business report released June 9 shows its Small Business Optimism Index slipped to 95.3 for May, the weakest reading since October 2024.
- The NFIB uncertainty index climbed to 91, well above its 52‑year average of 68, and the group said much of that uncertainty stems from the U.S.-Israeli war with Iran disrupting oil and commodity flows.
- A larger share of owners are passing costs to customers: 36% reported already raising prices and 34% plan to raise prices in the next three months, the highest readings in several years.
- Small firms are pulling back on growth plans with only 9% saying they plan to create jobs in the next three months and just 16% planning capital outlays, even as the government reported strong May payroll gains driven mainly by leisure, hospitality and local government hires.
- Economists polled by Reuters expect a sharp pickup in the May Consumer Price Index, a development that would reinforce Main Street price pressures and could translate into higher costs for consumers and tighter margins for small employers.