As companies accelerated recruitment and inflationary pressure eased, US small business optimism rose to its highest level in nearly a year in July. The National Federation of Independent Business's Small Business Optimism Index rose 2.4 points to 99.8, the highest level since August 2025. Of the 10 classified indices that make up the index, 8 rose and 2 declined. The net share of US small businesses planning to add jobs jumped to the highest level since October 2022, and the proportion of small businesses planning to make capital expenditure in the next few months reached the highest level since the end of 2024. Inflation concerns have abated somewhat. The share of respondents who listed inflation as the most important issue facing business owners declined for the first time since this year. The net share of companies reporting price increases also fell for the first time since February, before the US and Israel attacked Iran and drove oil prices to soar. The share of companies planning to raise prices in the next few months has also declined. Although uncertainties related to the war against Iran may still exist, businesses are still investing and expanding. “Despite the current high level of uncertainty, small businesses expect the business environment to continue to improve,” NFIB chief economist Bill Dunkelberg said in a statement.

As companies accelerated recruitment and inflationary pressure eased, US small business optimism rose to its highest level in nearly a year in July. The National Federation of Independent Business's Small Business Optimism Index rose 2.4 points to 99.8, the highest level since August 2025. Of the 10 classified indices that make up the index, 8 rose and 2 declined. The net share of US small businesses planning to add jobs jumped to the highest level since October 2022, and the proportion of small businesses planning to make capital expenditure in the next few months reached the highest level since the end of 2024. Inflation concerns have abated somewhat. The share of respondents who listed inflation as the most important issue facing business owners declined for the first time since this year. The net share of companies reporting price increases also fell for the first time since February, before the US and Israel attacked Iran and drove oil prices to soar. The share of companies planning to raise prices in the next few months has also declined. Although uncertainties related to the war against Iran may still exist, businesses are still investing and expanding. “Despite the current high level of uncertainty, small businesses expect the business environment to continue to improve,” NFIB chief economist Bill Dunkelberg said in a statement.