US small business optimism falls to 19‑month low in May

9th Jun 2026 12:15

(Sharecast News) - US small‑business sentiment weakened in May, according to the National Federation of Independent Business' small business optimism index, slipping to 95.3 from 95.9 in April - the lowest reading since October 2024 and below expectations of 96.

Taxes were cited as the most pressing issue by 19% of respondents, up two points on the month, followed by inflation at 18%, while supply‑chain issues also continued to bite, with 70% saying disruptions were affecting their business to some degree.

Only 16% plan capital outlays in the next three to six months, the weakest level since 2009.

A net 36% of owners raised selling prices, the most since March 2023, while a net 34% said they plan to make further increases - the highest reading since July 2022.

NFIB chief economist Bill Dunkelberg said: "More small business owners are struggling with significant and unpredictable hikes in fuel prices, which are more challenging for small businesses to pass on to their customers compared to their larger corporate competitors."

Reporting by Iain Gilbert at Sharecast.com