Small Business Optimism Rose 2.4 Points to 99.8 in July

Washington, DC, August 11, 2026—The NFIB Small Business Optimism Index rose 2.4 points in July to 99.8, rising above its 52-year average of 98.0. This marks the highest level since August 2025. 

Of the ten Optimism Index components, eight increased, and two decreased. Hiring plans improved substantially and contributed most to the rise in the Index. Real sales expectations and reports of inventory levels as “too low” both fell by two points. The Uncertainty Index rose two points from June to 91, remaining well above its historical average of 68. The rise was driven by an increase in owners reporting uncertainty about whether it is a good time to expand and capital expenditure plans.

As reported in NFIB’s monthly Jobs Report, the NFIB Small Business Employment Index rose after four consecutive months of decline, registering 102.1 in July. A seasonally adjusted 36% of small business owners reported job openings they could not fill, up four points from June and the highest reading since June 2025.

“Small business optimism rose again in July, with a significant increase in owners expecting to hire, accompanied by an improvement in plans to make capital expenditures,” said NFIB chief economist Bill Dunkelberg. “Although uncertainty is currently elevated, Main Street anticipates that business conditions will continue to improve.”

Key findings include:

• In July, the top reported issue was labor quality or availability. Twenty-seven percent of small business owners cited “labor quality or availability” as their single most important problem in July, up eight points from June and 15 points above the historical average of 12%.
• Thirty-six percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up four points from June and the highest reading since June 2025.
• Looking ahead, a seasonally adjusted net 20% of owners plan to create new jobs over the next three months, up nine points from June. Hiring plans are at their highest level since October 2022 and are nine points above the historical average.
• In July, both actual and planned price increases dropped notably from June. The net percent of owners raising average selling prices fell seven points from June to a net 31% (seasonally adjusted), after four consecutive months of increases. Looking forward to the next three months, a net 28% (seasonally adjusted) plan to increase prices, down four points from June.
• Reports of inflation as the single most important problem fell for the first time this year. Fourteen percent of business owners cited inflation as their single most important business problem, down seven points from June’s highest reading since October 2024.
• Twenty-five percent (seasonally adjusted) of small business owners plan to make capital outlays in the next six months, up five points from June and the highest reading since December 2024.
• The net percent of owners expecting higher real sales volumes over the next quarter fell two points from June to a net 7% (seasonally adjusted).
• The frequency of reports of positive profit trends improved four points from June to a net negative 16% (seasonally adjusted).