Small business owners in America are feeling the squeeze, and the numbers confirm it. The NFIB Small Business Optimism Index dropped 0.6 points to 95.3 in May, its lowest reading since October 2024.
That puts the index below the long-term average of 98.0 for two consecutive months.
The numbers paint a grim picture
The May data, released on June 9, showed deterioration across most of the index. Six of the ten components that make up the overall reading declined during the month.
Perhaps more telling than the headline number is the Uncertainty Index, which climbed 3 points to 91. For context, the historical average for that measure sits at 68. So current uncertainty is running roughly 34% above what’s considered normal.
