The government reported this month that nonfarm payrolls increased by 339,000 jobs in May. Strong hiring by small businesses partially explains the labor market's resilience. About 63% reported hiring or trying to hire in May, up 3 points from April. A net 19% planned to create new jobs in the next three months, up two points from April. The NIFB survey showed 44% of owners reported job openings that were hard to fill, down a point from April. That would be the smallest year-on-year gain since March of 2021 and would follow a 4.9% advance in April.Įconomists expect the Fed will keep its policy rate unchanged on Wednesday for the first time in more than a year. Key Facts The Small Business Optimism Index fell by 1.1 points in April to 89hitting the lowest level in just over 10 years, as business owners reported dampened expectations for the broad. In the 12 months through May, the CPI is forecast to climb 4.1%. Approximately 620 NFIB members are questioned in a survey to generate the NFIB Small Business Optimism Index in the United States. Government data on Tuesday is expected to show the Consumer Price Index rose 0.2% in May after an increase of 0.4% in April, according to a Reuters survey of economists.

The share was, however, 12 points lower than last July's peak, which was the highest reading since the fourth quarter of 1979.ĭespite the persistent worries about inflation, price pressures are subsiding as the aggressive interest rate hikes delivered by the Federal Reserve since March of 2022 cool demand. Twenty-five percent of small business owners reported that inflation was their single most important problem, up two points from April. A net negative 21% expected higher inflation-adjusted sales, down two points from April.

The share of owners expecting better business conditions over the next six months slipped one point to a net negative 50%.

Small business optimism