Small business owners are more optimistic about future business conditions

That's the finding of a May survey by the National Federation of Independent Business Research Center .

Their optimism is up 3.5 points from April.

Only 2 of 10 index indicators declined.

Forecasts for business conditions over the next 6 months rose 5 index points after a 24-point April increase.

Respondents said they expect a short recession.

Bill Dunkelberg, chief economist of NFIB, said, “It’s still uncertain when consumers will feel comfortable returning to small businesses and begin spending again, but owners are taking the necessary precautions to reopen safely.”

Real sales forecasts for the next 3 months increased 8 points to a negative 24% from April’s negative 42% 

Of the 52% of respondents who reported capital expenditures, 35% bought new equipment, 20% acquired company vehicles, 15% boosted capacity or refurbished their facilities and 5% bought land or new buildings.

Another 20% are considering future expenditures after damage from riots the last few weeks.

Reported nominal sales have dipped since April’s survey by 8 points. 

Income rose with government assistance but consumers were limited in spending options.

About 14% of the respondents boosted employee compensation, while 10% expect to raise wages or salaries in the next 3 months.