Small Business Boom? Optimism Surges as Sales Outlook Brightens Despite Tax and Tariff Fears

Small business confidence climbed in May, breaking a four-month slump, as more owners expect higher sales, according to the NFIB. The optimism index rose above its 51-year average, driven by an 11-point jump in sales expectations and a spike in planned capital spending.

Still, uncertainty remains. Taxes topped the list of concerns for the first time since 2020, and worries over tariffs and stalled tax legislation continue to weigh on sentiment. While economic growth is projected to slow in 2025, many business owners are staying cautious but strategic—focusing on cost control and smart hiring amid shifting conditions.