A new report from the National Federation of Independent Businesses finds that optimism in small businesses has risen.
The report found that optimism in small business owners nationwide rose 2.4 points to 99.8, above the 52-year average of 98, the highest level since August 2025. Of 10 optimism Index components, eight increased and two decreased. While state-level data was not available, NFIB’s Pennsylvania Director Greg Moreland said the report shows Pennsylvania’s small businesses are feeling good about business.
“Main Street hiring plans improved significantly in July, which led to an increase in optimism among small business owners,” Moreland said in a statement. “As inflationary pressures begin to ease, more small employers can invest in their employees and communities.”
The report found that hiring plans have improved, a contributing factor in the Index’s rise, and that real sales expectations and reports of “too low” inventory levels fell by 2 points. Additionally, the report found that the Uncertainty Index rose 2 points since June, putting it at 91, well above its historic average of 68. Driving that rise was an increase in owners reporting uncertainty about whether it’s a good time to expand and capital expenditure plans.
The NFIB reported in July in its monthly Jobs Report, the NFIB Small Business Employment Index rose after four consecutive months of decline. In July, the top reported issue was labor quality or availability. The report found that 27 percent of small business owners cited “labor quality or availability” as their single most important problem in July, up 8 points from the previous month, and up 15 points over the historical average of 12 percent. The report also found that 36 percent of all owners reported job openings that they could not fill, up 4 points from June and the highest reading since June 2025. Twenty percent of small business owners said they plan to create new jobs over the next three months, the highest level since October 2022, and up 9 points over the historical average.
Small business owners reporting inflation as their single most important problem fell for the first time in a year, the report said, and the net percent of owners expecting higher real sales volumes over the next quarter fell two points as well.