NFIB Small Business Optimism Dipped Slightly to 98.7 in August

Washington, DC, September 8, 2026—The NFIB Small Business Optimism Index dipped in August to 98.7, just 1.1 points below July’s highest level since August 2025, but remaining above the 52-year average of 98.0. The Uncertainty Index fell 2 points to 89, remaining above the historical average of 68.

“Uncertainty remains elevated among small business owners as they face a mixed set of challenges with weakened sales, supply chain disruptions, and inflation pressures,” said NFIB chief economist Bill Dunkelberg. “While expectations for the overall economy dimmed, Main Street owners remain largely positive in the health of their own businesses.”

Key findings:

• Reports of “labor quality or availability” and “labor costs” as owners’ single most important problem eased in August, with “labor costs” dropping to its lowest level since March 2021. However, labor quality or availability in particular remains far above its long-term average.
• Expectations for better business conditions deteriorated five points to a net 10% (seasonally adjusted) but remain above the average of net 4%.
• When asked to evaluate the overall health of their business, 11% of owners rated it as excellent (down three points), 57% as good (up two points), 28% as fair (up two points), and 3% as poor (down one point).
• Actual sales worsened in August, with a seasonally adjusted net negative 9% of owners reporting higher nominal sales in the past three months, down five points from July and the lowest reading since November 2025.
• Reports of inflation as the single most important problem increased two points in August to 16%, now tying with taxes as the second top small business issue.
• The net percent of owners expecting easier credit conditions rose two points from July to a seasonally adjusted net negative 2%, the highest level since December 2024.
• Sixty-two percent of small business owners reported that supply chain disruptions affected their business to some extent, down one point from July.