US Small Business Sentiment Edges Down in June

The NFIB Small Business Optimism Index in the US came in at 98.6 in June 2025, below 98.8 in May and forecasts of 98.7, but holding slightly above the 51-year average of 98.

A substantial increase in respondents reporting excess inventories contributed the most to the decline in the index. 19% of small business owners reported taxes as their single most important problem, up one point from May and ranking as the top problem again.

The last time taxes reached 19 percent was in July 2021.

In addition, many others are still concerned about labor quality and high labor costs.

The net percent of owners expecting better business conditions fell three points to 22%.

The net percent of owners expecting higher real sales volumes fell three points to 7% and 21% plan capital outlays in the next six months, down one point from May.

Meanwhile, the Uncertainty Index decreased by five points to 89.