Small business optimism rose 2.1 points in June to 97.4, nearing its 52-year average of 98.0, according to the National Federation of Independent Business's Small Business Optimism Index. Improved expectations for business conditions and real sales drove most of the increase. The Uncertainty Index fell 2 points month-over-month to 89, still well above its historical average of 68.
"Current economic conditions present small business owners with both encouraging developments and ongoing challenges," NFIB Chief Economist Bill Dunkelberg said. "Lower fuel costs provide welcome relief for businesses as well as consumers, with firms anticipating improved operating conditions over the next six months. While there have been improvements in the overall environment, high interest rates and modest economic growth are causing owners to approach hiring and capital spending with caution."
Other June findings:
- The net percent of owners expecting better business conditions over the next six months rose 10 points to a net 13% (seasonally adjusted), improving for the first time this year.
- The net percent of owners raising average selling prices rose 2 points from May to a net 38% (seasonally adjusted), the fourth consecutive monthly increase and the highest level since January 2023.
- Inflation was cited as the single most important problem for 21% of owners, up 3 points from May and the highest reading since October 2024. It ranks as the top problem overall.
Read more of the findings here.
