The US NFIB Small Business Optimism Index rose to 99.8 in July 2026, its highest level since August of the previous year, up from 97.4 in June and above the consensus forecast of 97.5. Of the Index’s ten components, eight improved and two declined.
Hiring plans were the strongest contributor to the overall gain, reaching their highest level since October 2022. A net 20% of small business owners plan to create new jobs over the next three months, an increase of 9 percentage points from June. In July, labor quality and availability remained the most frequently cited problem.
Pricing pressures eased notably. The net share of owners raising average selling prices declined by 7 points to 31%, while the net share planning future price hikes fell by 4 points to 28%.
Real sales expectations and reports of inventories being “too low” both slipped by 2 points. At the same time, the Uncertainty Index edged up 2 points, reflecting more owners expressing uncertainty about whether it is a good time to expand and about their capital expenditure plans.
