US small business optimism falls to 98.7 in August

(Sharecast News) - The National Federation of Independent Business' US small business optimism index slipped to 98.7 in August, down from 99.8 in July, undershooting forecasts for a softer decline to 99.3. Actual sales weakened, with a net ‑9% of owners reporting higher nominal sales over the past three months - the lowest reading since November 2025.

Reports of inflation as the single most important problem rose to 16%, now tied with taxes as the second‑most cited issue.

Concerns around labour quality or availability and labour costs eased, with labour‑cost worries falling to their lowest level since March 2021, while expectations for better business conditions deteriorated.

"Uncertainty remains elevated among small business owners as they face a mixed set of challenges with weakened sales, supply chain disruptions, and inflation pressures. While expectations for the overall economy dimmed, Main Street owners remain largely positive in the health of their own businesses", said NFIB chief economist Bill Dunkelberg.





Reporting by Iain Gilbert at Sharecast.com