U.S. Small-Business Optimism Hits Highest Level Since 2025

The National Federation of Independent Business reported that U.S. small-business optimism rose to 99.8 in July, marking the highest level since August 2025. The index increased by 2.4 points, a growth attributed to a surge in hiring plans and intentions for capital outlay.

Business owners showed reduced concern over inflation, with the number of reports citing inflation as their top problem falling for the first time this year. For the first time since February, the share of firms raising prices also decreased. This trend follows previous shifts in pricing strategies that occurred after U.S. and Israeli military strikes on Iran.

Despite ongoing uncertainty tied to the conflict with Iran, small businesses continue to expand and invest. Bill Dunkelberg, the chief economist for the federation, noted that while uncertainty remains elevated, business owners anticipate that conditions will continue to improve.