The NFIB Small Business Optimism Index rose 3.0 pts to 98.8 in May 2025, just above its 51-year average, driven by improved outlooks for sales and economic conditions.

• The net percent expecting better business conditions jumped 10 pts to 25, while expected real sales rose 11 pts to 10.
• Earnings trends worsened, falling -5 pts to -26, with weaker sales cited as the top reason.
• Hiring plans edged down 1 pt to 12, and job openings remained unchanged at 34%.

• Price hikes remained steady at a net 25%, while compensation plans rose 3 pts to 20 despite a sharp drop in actual wage hikes.
• The Price Plans index increased 3 pts to 31, the highest since March 2024.
• Inventory sentiment rose sharply, with 1% of firms saying current inventories are “too low” — the highest since August 2022.