- Prior was 97.4
- Full report here
Optimism among US small business owners strengthened further in July, with the NFIB index rising 2.4 points to 99.8. The reading moved above the index’s 52-year average of 98.0 and reached its highest level since August 2025.
The July increase was broad-based, with eight of the index’s 10 components improving, while two declined. The strongest contribution came from hiring plans, pointing to a renewed willingness among small businesses to expand their workforces.
NFIB Chief Economist Bill Dunkelberg said: “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. Although uncertainty is currently elevated, Main Street anticipates that business conditions will continue to improve”.
The improvement in labor-market expectations was one of the key features of July’s report. The NFIB Small Business Employment Index rose to 102.1, marking a rebound after four consecutive months of declines. Labor demand also remained strong.
Small businesses continue to face difficulties finding suitable workers. Persistent labor shortages can place upward pressure on wages and operating costs, while also potentially limiting the ability of businesses to respond to stronger demand.
Hiring was not the only area showing greater confidence. Plans for capital expenditures also improved, supporting the broader increase in optimism. Greater willingness to invest is particularly important because capital spending decisions tend to reflect business owners’ expectations about future economic conditions. An increase in investment plans therefore suggests that more businesses are becoming comfortable committing resources to expansion, equipment and other productive capacity.
The NFIB Uncertainty Index increased 2 points in July to 91, remaining well above its historical average of 68. The rise was driven primarily by more business owners expressing uncertainty over whether it is a good time to expand and by changes in capital expenditure plans.
The headline optimism index is now above its long-term average, hiring plans have strengthened, and capital expenditure expectations have improved. Taken together, these figures paint a generally positive picture of the small-business sector.
This article was written by Giuseppe Dellamotta at investinglive.com.
