FX.co ★ US Small Business Sentiment at 5-Month High

In July 2025, the NFIB Small Business Optimism Index in the United States increased to 100.3, marking its highest level in five months. This rise is up from the 98.6 reported in June, surpassing expectations and remaining above its 52-year average of 98. According to NFIB Chief Economist Bill Dunkelberg, "Optimism edged up slightly in July as business owners expressed more positive expectations regarding business conditions and expansion prospects. Although uncertainty remains high, the coming six months offer hope for greater clarity, particularly as business owners witness the implications of Congress's decision to make the 20% Small Business Deduction permanent and the finalization of trade policy." Moreover, labor quality has resurfaced as the primary issue for Main Street businesses. Notably, there was an improvement in overall business health, with the net percentage of owners anticipating better business conditions rising to 36%. Additionally, 16% of business owners indicated it is a favorable time for business expansion, while 11% identified inflation as the most significant challenge to their operations.