Small Business Confidence Reaches a New High in a Year, Hiring Rebounds Showing Confidence

The National Federation of Independent Business (NFIB) Small Business Optimism Index rose by 2.4 points to 99.8 in July, the highest level since August 2025. Among the ten components of the optimism index, eight increased while two declined. Hiring plans showed significant improvement, contributing the most to the rise in the index. NFIB Chief Economist Bill Dunkelberg stated, "The small business optimism has risen again in July, with a notable increase in the number of owners expecting to hire, and plans for capital expenditures have also improved. Despite the current high level of uncertainty, we expect the business environment to continue to improve." Looking ahead, 20% of business owners plan to add jobs in the next three months, 14% view inflation as their biggest business challenge, and 25% of small business owners plan to make capital expenditures in the next six months.