Cornhusker State News

The National Federation of Independent Business (NFIB) Small Business Optimism Index saw a rise in May, climbing three points to 98.8, which is slightly above the long-term average. The improvement was mainly driven by better expectations for business conditions and sales. However, the Uncertainty Index also increased by two points from April to reach 94.

Bill Dunkelberg, NFIB Chief Economist, commented on the situation: “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.”

In Nebraska, Ryan McIntosh, NFIB Nebraska State Director noted an increase in confidence among small businesses but highlighted ongoing challenges: “Nebraska’s small business community is showing signs of increased confidence. However, the challenge of burdensome taxes remains a significant hurdle for many owners.” He urged Congress to make the Small Business Deduction permanent as a measure to help these businesses thrive.

Among key findings from the report:

- A net 1% of owners viewed their inventory stocks as "too low" in May.

- The percentage of owners expecting better business conditions rose significantly.

- Twenty-two percent plan capital outlays within six months.

- Fourteen percent identified inflation as their main problem.

Job market dynamics remained unchanged with 34% reporting unfilled job openings and a majority struggling with labor quality issues.

Labor costs became more pressing for some business owners while compensation plans varied with fewer planning increases compared to previous months.

In terms of capital expenditure over recent months, 56% reported such activity despite being at its lowest level this year.

Sales trends showed mixed results; poor sales remained a consistent issue for some while others cited inventory changes or price adjustments.

Lastly, financing concerns saw minor fluctuations with some noting higher interest rates affecting their borrowing experience.

The NFIB Research Center has been gathering data since 1973 through regular surveys conducted among its members. This latest survey reflects data collected during May 2025 and continues its tradition of providing insights into small business economic trends each month.