Small business owners expecting better business conditions over the next six months dropped four points to a net negative 54% in May, the lowest level ever recorded on the 48-year-old NFIB Optimism Index.
Small business optimism dipped 0.1 points in May to a level of 93.1. It is the fifth consecutive month below the 48-year average index level of 98. Inflation continued to be a top concern among small business owners.
“Inflation continues to outpace compensation which has reduced real incomes across the nation,” NFIB Chief Economist Bill Dunkelberg said in a statement. “Small business owners remain very pessimistic about the second half of the year as supply chain disruptions, inflation, and the labor shortage are not easing.”
The net percent of owners raising average selling prices increased two points in May to a net 72%, tying the highest reading in the survey’s history and soaring 32 points compared with May 2021.
The full NFIB report can be found here.