- U.S. small-business confidence and hiring plans increased in May to their highest levels of the year, but the looming U.S. presidential election also drove uncertainty to nearly a four-year high, a survey showed on Tuesday.
Despite the gain, it was the 29th straight month the index was below the 50-year average of 98. The NFIB's Uncertainty Index rose nine points to 85, the highest reading since November 2020, the month the last U.S. presidential election took place. There were some indications that small business owners may be beginning to pull back on raising wages. A net 37% of owners reported increasing compensation, down one point from 38% in April, while 18% planned to boost compensation over the next three months, down three points and the lowest reading since March 2021.
"For 29 consecutive months, small business owners have expressed historically low optimism and their views about future business conditions are at the worst levels seen in 50 years," said Bill Dunkelberg, NFIB's chief economist, as inflation once again topped the list of small business owners' concerns.