US small business confidence improved in May, driven by a trade truce with China, but uncertainty over the tax-cut agenda and labor market issues remain. The National Federation of Independent Business said its Small Business Optimism Index increased three points to 98.8, marking the first rise since December. The survey’s uncertainty index rose two points to 94, with small business owners citing concerns over President Trump’s policies. Despite this, 10% more businesses expect higher inflation-adjusted sales volumes and a significant increase in those viewing current inventory as “too low”. However, labor market issues persist, with the share of owners reporting labor quality being the single most important problem for their business dropping to near levels last seen in 2020.
Source: https://www.reuters.com/business/us-small-business-sentiment-improves-may-uncertainty-rising-2025-06-10