The NFIB Small Business Optimism Index rose in May to the highest level since October. Analysts at Wells Fargo noted capex plans rose, while inflationary pressures fell. They point out labor market components remain strong, which should allay fears of a broad slowdown in hiring
Key Quotes:
“Small firm confidence rose 1.5 points in May to 105.0. Despite trade uncertainty, owners are confident about future prospects. Notably, 30% of firms plan to increase capital spending outlays, a historically high level and up three points during the month.”
“The NFIB noted some further moderation in inflation. The share expecting to raise selling prices fell to only 20%, suggesting slowing demand may be curbing pricing power.”
“An estimated 25% of firms cited finding qualified workers as their single most important problem, matching the record high.”
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