US small-business optimism rose in July to the highest level in almost a year as firms ramped up hiring plans and inflation pressures eased.
The National Federation of Independent Business index increased 2.4 points to 99.8, the highest level since August 2025. Eight of the 10 components that make up the gauge improved and two declined.
The net share of US small businesses planning to add jobs jumped to the highest level since October 2022 while the share planning to make capital outlays in the months ahead advanced to the strongest reading since the end of 2024.
Concerns around inflation softened. Reports of inflation as the most important problem for business owners fell for the first time this year. The net share of firms that reported raising prices fell for the first time since February, just before the US and Israel military strikes on Iran sent oil prices higher. A smaller share of businesses are planning price increases in the coming months.
Businesses are investing and expanding despite uncertainty that is likely related to the war with Iran.
“Although uncertainty is currently elevated, Main Street anticipates that business conditions will continue to improve,” NFIB Chief Economist Bill Dunkelberg said in a statement.
This article was provided by Bloomberg News.