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US small business optimism up but uncertainty clouds outlook

The NFIB Small Business Optimism Index rose to 100.3 in July, surpassing the 52-year average of 98 amid easing tariff concerns and improved labor conditions, NFIB said.

  • On Tuesday, the National Federation of Independent Business released its July Small Business Optimism Index, rising 1.7 points to 100.3, above the 52-year average of 98.
  • Amid easing tariff concerns, Holly Wade noted the One Big Beautiful Bill's tax provisions were `really, really critical`, and a 90-day China trade deal extension has provided more breathing room.
  • When asked to rate their business health, 13% of small-business owners reported excellent and 52% good, while the net expect better conditions rose 14 points to 36%, and the NFIB uncertainty index increased from 89 to 97.
  • In July, small-business owners reported that 16% said it is a good time to expand, up five points, and a net 14% plan to create new jobs, up one point.
  • Amid strong hiring figures, government data shows a 1% firing rate and 3.3% hiring rate, with over 40% of small businesses raising prices due to tariff-related cost pressures.
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Bloomberg broke the news in United States on Tuesday, August 12, 2025.
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