Small business conditions have weakened a little bit over the last month. Pay attention to these reports because they provide insight into what businesses are facing, the challenges they are experiencing, and where they are doing well.
NFIB Small Business Economic Trends Report
In this case, optimism went down a little bit. Labor remains an issue, which is why training employees, education, and similar efforts can improve labor capabilities. Technology also has an impact on this. Inflation remains an issue for businesses, and expectations for improved business conditions have declined somewhat. Overall, there is a little more pessimism in the market.
However, it is important to watch these trends over time, including year-over-year changes, because a short-term snapshot can be misleading. If the overall score is still above its historical average, a small monthly decline may not necessarily indicate a significant deterioration in business conditions.
Small Business Conditions and Economic Outlook in August 2026
- Small-business optimism declined to 98.7 but remained above the long-term average of 98.0.
- Sales weakened, with a net -9% of owners reporting higher nominal sales over the previous three months.
- Labor availability remained the top business concern, with 23% identifying labor quality or availability as their most important problem.
- Inflation continued to pressure businesses, with 16% identifying it as their most important problem and 31% reporting higher selling prices.
- Expectations for improved business conditions declined to a net 10%, although this remained above the historical average of 4%.
National Federation of Independent Business Research Center. (2026, September 8). Small Business Optimism Index: August 2026. NFIB. NFIB Small Business Economic Trends Report
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