Small Business Index Dips Lower in May

Weak sales continued to push the Small Business Optimism index lower for the third consecutive month, according to data from the National Federation of Independent Businesses. The index fell 0.3 points in May to 90.9. In addition, one in 10 respondents to the random survey of NFIB members said inflation was their "most serious business problem."

Highlights from the most recent index include:

• The average employment change for small businesses throughout the previous three months was +0.01, and 12 percent of respondents reported unfilled job openings.
• Just 5 percent of respondents view the current period as a good time to expand operations. Of those who view the current period as a bad time to expand, 71 percent blame the weak economy.
• Capital spending remains historically low in spite of very low interest rates and expensing incentives.
• The seasonally adjusted net percent of owners raising average selling prices reached 15 percent, or a 3-point increase.