NFIB Small Business Optimism – May 2022

The May NFIB Small Business Optimism report was released today, June 14, 2022. The headline of the Economic Trends report is “Small Business Owners’ Expectations for the Future at 48-year Low.”

The Index of Small Business Optimism decreased by .1 points to 93.1.

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

The NFIB Optimism Index fell 0.1 points in May to 93.1, marking the fifth consecutive month below the 48-year average of 98. Owners expecting better business conditions over the next six months decreased four points to a net negative 54%, the lowest level recorded in the 48-year-old survey. Expectations for better business conditions have deteriorated every month since January.

Twenty-eight percent of owners reported inflation was their single most important problem in operating their business, a decrease of four points from April. The net percent of owners raising average selling prices increased two points to a net 72% (seasonally adjusted), back to the highest reading in the 48-year-history of the survey last reached in March and 32 points higher than May 2021.

Below is a chart of the NFIB Small Business Optimism chart, from the Advisor Perspectives’ June 14, 2022 post titled “NFIB Small Business Survey…“:

NFIB Small Business Optimism Index 93.1

Further details regarding small business conditions can be seen in the full May 2022 NFIB Small Business Economic Trends (pdf) report.


The Special Note summarizes my overall thoughts about our economic situation

SPX at 3752.90 as this post is written