Optimism among small businesses in the U.S. reaches its highest level in nearly a year.

As U.S. businesses accelerate hiring and inflationary pressures ease, small business optimism rose in July to its highest level in nearly a year. The National Federation of Independent Business's (NFIB) Small Business Optimism Index increased by 2.4 points, reaching 99.8, the highest level since August 2025. Among the ten component indices of the index, eight rose while two fell. The net percentage of small businesses in the U.S. planning to add jobs surged to its highest level since October 2022, and the proportion of small businesses planning capital expenditures in the coming months reached the highest level since the end of 2024. Concerns about inflation have eased. The percentage of respondents citing inflation as the most important issue facing business owners has declined for the first time this year. The net percentage of businesses raising prices also fell for the first time since February, prior to the U.S. and Israel's actions against Iran that drove oil prices up. The proportion of businesses planning to raise prices in the coming months also decreased. Despite the uncertainties related to the war in Iran, businesses are still investing and expanding. NFIB Chief Economist Bill Dunkelberg stated, Despite the current high level of uncertainty, small businesses expect the business environment to continue improving.