The National
Federation of Independent Business (NFIB) announced on Tuesday that its Small
Business Optimism Index advanced by 3.0 points to 98.8 in May, following a 1.6-point
drop in the previous month. This marked
the first rise in the
indicator in five months, which lifted it slightly above the 51-year average of
98.0.
Economists had forecast
the gauge to increase to 95.9 in May.
According
to the report, the May climb in the headline gauge was due to increases in 7 of
all 10 components, led by a measure of small business owners expecting real
sales to be higher (+11 points), a measure of small business owners expecting
the improvement in the economy (+10 points), and a measure of small business
owners viewing current inventory stocks as “too low” (+7 point).
Commenting on
the latest data, Bill Dunkelberg, NFIB Chief Economist, noted that, 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
expectations on business conditions and sales growth,” he added.