The Experian Small Business Index™ declined by 6.2 points month-over-month, remains up by 5.3 points Year-Over-Year
Dec 2025
- Index Value (Dec):45.8
- Previous Month:52.0
- MoM:-6.2
- YoY:5.3 (Dec 2024 = 40.5)
The Experian Small Business Index™ decreased 6.2 points to 45.8 in December, which was 5.3 points higher year-over-year. The monthly decrease coincided with increases in certain business risk indicators, including higher delinquency rates and rising balances, alongside a reduction in new credit activity, suggesting a tighter lending environment.
Broader economic conditions remained stable in December. The unemployment rate edged down to 4.4% from 4.5%, while inflation trends were mixed. Energy price inflation declined, the producer price index remained flat, and rent and food inflation increased. These conditions contributed to the Federal Reserve’s decision to maintain interest rates at its January meeting.
Small businesses and consumers both showed improved optimism with both the NFIB Small Business Optimism Index and the University of Michigan Consumer Sentiment Index recording increases in December.
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Small businesses navigated headwinds in May as uncertainty began to rise May 2026 Index Value (Mar): 51.2 Previous Month: 52.2 MoM: -1.0 YoY: +6.0 (May 2025 = 57.2) The Experian Small Business Index™ decreased slightly, falling 1 point to 51.2 in May, but remained 6 points higher than a year ago. Several credit risk factors supported the index in May. Past-due balances on business owners’ consumer accounts declined, as did later-stage delinquencies on their commercial accounts. However, several factors weighed on the index. Commercial credit utilization increased, and there was a sharp rise in consumer public records filings. While public records are typically a lagging indicator, this trend warrants monitoring in the coming months. In the broader economy, the unemployment rate declined to 4.2% from 4.3%, and GDP grew by 2.1%, exceeding expectations. Several measures of inflation also increased in May. Headline inflation rose from 3.8% in April to 4.2%, while core inflation, which excludes food and energy, increased from 2.8% to 2.9%. Energy prices were 23.5% higher than a year earlier and likely contributed to broader inflationary pressures. Food prices declined 0.1%, while rent increased 0.1%. Business formation remained strong, with 524,000 new business applications filed in May, up from 505,000 in April. This occurred despite the NFIB Uncertainty Index increasing to 91. The NFIB Small Business Optimism Index edged down to 95.3 in May from 95.9 in April. Explore Experian Small Business Index Related Posts
The Experian Small Business Index gained 3 points in April, driven by strong business formation, increased business credit demand.
