The US NFIB Small Business Optimism Index declined to 98.7 in August 2026 from 99.8 in July, coming in below expectations of 99.3. Actual sales weakened, with a net negative 9% of owners reporting higher nominal sales over the past three months—the lowest reading since November 2025.
Concerns about inflation intensified: 16% of owners cited inflation as their single most important problem, bringing it level with taxes as the second most pressing issue for small businesses. At the same time, reports of “labor quality or availability” and “labor costs” as the top concern eased, with “labor costs” falling to its lowest share since March 2021.
Expectations for improved business conditions also deteriorated. “Uncertainty remains elevated among small business owners as they face a mixed set of challenges with weakened sales, supply chain disruptions, and inflation pressures. While expectations for the overall economy dimmed, Main Street owners remain largely positive in the health of their own businesses,” said NFIB Chief Economist Bill Dunkelberg.
