Small Business Optimism Rose to 100.8 in August

Washington, DC, September 9, 2025-The NFIB Small Business Optimism Index rose a half point in August to 100.8, nearly three points above the 52-year average of 98. Of the ten Optimism Index components, four increased, four decreased, and two were unchanged. The increase in those expecting real sales to be higher contributed the most to the rise in the Optimism Index. The Uncertainty Index fell by four points to 93 but remained well above the historical average. The decline was due to a decrease in uncertainty about financing expectations and planned capital expenditures.

“Optimism increased slightly in August with more owners reporting stronger sales expectations and improved earnings. While owners have cited an improvement in overall business health, labor quality remained the top issue on Main Street,” said NFIB chief economist Bill Dunkelberg.

Key findings:

• In August, there was a notable improvement in overall business health. When asked to rate the overall health of their business, 14% reported excellent (up one point), and 54% reported it as good (up two points). Twenty-seven percent reported the health of their business as fair (down four points), and 4% reported poor (unchanged).
• The percent of small business owners reporting labor quality as the single most important problem for their business remained at 21%, continuing to rank as the top problem.
• In August, 32% (seasonally adjusted) of all owners reported job openings they could not fill in the current period, down one point from July. The last time unfilled job openings fell below 32% was in July 2020.
• The net percent of owners expecting higher real sales volumes rose six points from July to a net 12% (seasonally adjusted). This component contributed the most to the Optimism Index’s increase.
• A net 0% (seasonally adjusted) of owners viewed current inventory stocks as “too low” in August, up three points from July. The net percent of owners raising average selling prices fell three points from July to a net 21% (seasonally adjusted), the lowest reading of this year.
• The frequency of reports of positive profit trends improved three points to a net negative 19% (seasonally adjusted). August’s reading was the best since March 2023.
• In August, the average rate paid on short maturity loans was 8.1%, down 0.6 points from July and the lowest reading since May 2023.
• Twenty-three percent of all owners reported borrowing on a regular basis, down two points from July. The last time the percent of business owners borrowing on a regular basis was below 23% was in November 2021.