U.S. Small Business Confidence Edged Lower Last Month

By Jessica Coacci

Confidence among U.S. small businesses pulled back slightly in August as uncertainty remained elevated and expectations for better business conditions declined.

The National Federation of Independent Business said that its small-business optimism index ticked down 1.1 points to 98.7 in August. Despite falling slightly, the reading remains above the 52-year average and comes after July's level reached the highest since August 2025.

The NFIB survey provides a monthly snapshot of small businesses in the U.S., which account for nearly half of private-sector jobs. Small businesses are often more sensitive than larger firms to sudden price fluctuations, higher interest rates and broader economic uncertainty.

"Uncertainty remains elevated among small business owners as they face a mixed set of challenges with weakened sales, supply chain disruptions, and inflation pressures," said NFIB Chief Economist Bill Dunkelberg.

The uncertainty index fell 2 points to 89 in August, but remained above the historical average of 68.

Actual sales worsened, with a seasonally-adjusted net negative 9% of owners reporting higher nominal sales in the past three months--the lowest reading since November 2025, the NFIB survey said.

Meanwhile, reports of inflation as the single most important problem increased 2 points in August to 16%. Looking ahead, expectations for better business conditions fell 5 points to a net 10%.

In addition, a seasonally adjusted net 17% of owners plan to create new jobs in the next three months, down three points from July's level.

Write to Jessica Coacci at jessica.coacci@wsj.com

(END) Dow Jones Newswires

September 08, 2026 06:14 ET (10:14 GMT)