The Small Business Optimism Index for May was 95.3, down 0.6 points from April. The Index remains slightly above its 52-year average of 98 but marks the second consecutive monthly decline. The Uncertainty Index rose 3 points from April to 91.
In May, 29% (seasonally adjusted) of all owners reported job openings they could not fill in the current period, down 5 points from April. 27% had openings for skilled workers (down 2 points), and 9% had openings for unskilled labor (down 4 points). A seasonally adjusted net 9% of owners plan to create new jobs in the next three months, down 4 points from April and the lowest level since May 2020. Overall, 55% reported hiring or trying to hire in May, up 2 points from April. In May, 13% of small business owners cited labor quality as their single most important problem, down 5 points from April and marking the lowest level since December 2016.
A seasonally adjusted net -5% of all owners reported higher nominal sales in the past three months, up 3 points from April. While actual sales volume increased in May, sales expectations weakened.
The net percent of owners expecting higher real sales volumes over the next quarter fell 2 points from April to a net 1% (seasonally adjusted). The net percent of owners reporting inventory gains fell 1 point to a net -6% (seasonally adjusted).
A net 4% reported their last loan was harder to get than in previous attempts, up 1 point from April and close to the historical average of a net 6%. In May, a net 6% of owners reported paying a higher interest rate on their most recent loan, up 4 points from April.
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