Small U.S. businesses are feeling slightly more confident, according to a Tuesday report.
The NFIB Small Business Optimism Index increased by 3 points in May to 98.8, slightly above the 51-year average of 98. It’s the first improvement in sentiment since December, with eight of the ten components that make up the index rising from April’s levels.
Improving sales expectations contributed most to the overall increase. Owners expecting to see a rise in sales was up 11 points, to a (seasonally adjusted) net of 10%. The second-largest rise was from owners who expect the economy to improve, rising by 10 points to a net 25%—a historically high reading.
While there were green shots of optimism, owners’ attitudes toward the the overall outlook of their businesses remained relatively unchanged from April. As part of the report, respondents were also asked to provide a rating for the health of their businesses: 14% reported “excellent” (up one point); 55% reported “good” (down one point); 28% reported “fair” (up one point); 4% reported “poor” (unchanged).
“Although optimism recovered slightly in May, uncertainty is still high among small business owners. While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectation