The US NFIB Small Business Optimism Index inched down to 97.8 in October 2026 from 97.9 in September, marking the lowest level since June and coming in just above expectations of 97.7. “There was little change in optimism among small businesses in October as owners navigated enduring challenges, though there were some encouraging developments,” said NFIB Chief Economist Bill Dunkelberg.
The share of small business owners citing the quality or availability of labor as their top operating problem slipped by 1 percentage point to 25%, but remained the most frequently reported issue for the fourth consecutive month. Taxes ranked as the second most important concern and increased notably from September, with 21% of owners naming taxes as their single most important problem — the highest share since May 2021.
At the same time, expectations for better business conditions improved after two months of deterioration: a net 8% of owners now anticipate better business conditions over the next six months, up 2 points from September.
