NFIB Small Business Optimism – May 2020

The May NFIB Small Business Optimism report was released yesterday, June 9, 2020. The headline of the Economic Trends report is “Small Business Optimism Index Rebounds from April, Earnings Trends Decline.”

The Index of Small Business Optimism increased by 3.5 points to 94.4.

Here is an excerpt that I find particularly notable (but don’t necessarily agree with):

The Small Business Optimism Index increased 3.5 points in May to 94.4, a strong improvement from April’s 90.9 reading. Eight of the 10 Index components improved in May and two declined. The NFIB Uncertainty Index increased seven points to 82. Reports of expected business conditions in the next six months increased 5 points to a net 34%, following a 24-point increase in April. Owners are optimistic about future business conditions and expect the recession to be short-lived.

Here is a chart of the NFIB Small Business Optimism chart, from the Advisor Perspectives’ June 9 post titled “NFIB Small Business Survey…“:

NFIB Small Business Optimism Index

Further details regarding small business conditions can be seen in the full May 2020 NFIB Small Business Economic Trends (pdf) report.


The Special Note summarizes my overall thoughts about our economic situation

SPX at 3197.03 as this post is written