US small-business sentiment improved in May for first time this year

Bloomberg says sentiment among small business owners in the US rose in May for the first time in 2025. Companies grew more positive about the country’s economic outlook.

According to the National Federation of Independent Business, the small business optimism index rose 3 points to 98.8. Additionally, the group notes better expectations for real sales and business conditions. Meanwhile, the uncertainty index was also up due to President Donald Trump's erratic policies. Increased optimism in May came amid easing global trade tensions, Bloomberg notes.

The share of owners planning capital expenditures in the coming months climbed to a record high this year, but remained close to its lowest level since the pandemic.

31% of US small businesses say they intend to raise prices of goods and services in the next three months due to the projected uptick in inflation. Besides, firms expect harder credit conditions over the same period. While companies are more optimistic about the sales outlook, 13% of them reported a decline over the past three months.