May saw a significant surge in optimism among America’s small business owners, reaching a three-month high according to the National Federation of Independent Business (NFIB). The NFIB Small Business Optimism Index jumped to 98.8, a healthy increase from April’s 95.8 and surpassing analyst predictions of 95.9.

This positive shift is largely attributed to easing trade tensions, injecting a much-needed dose of confidence into the sector. However, NFIB Chief Economist Bill Dunkelberg cautions against premature celebrations. In a statement, he noted that while owners reported improved expectations regarding business conditions and sales growth, significant uncertainties remain.

Dunkelberg emphasized that the economy’s overall trajectory remains somewhat uncertain until key sources of uncertainty are addressed. Despite this caveat, the data reveals a notable improvement. Specifically, the net percentage of owners anticipating a more favorable business climate and increased sales saw a substantial boost—rising by 10 and 11 points respectively.

This rebound in optimism offers a glimmer of hope for the small business sector, a crucial engine of the U.S. economy. Whether this positive trend will continue remains to be seen, but for now, the May figures suggest a welcome shift in sentiment.