NASHVILLE, TN – The National Federation of Independent Business says its Small Business Optimism Index rose 1.7 points in July to 100.3 — slightly above the long-term average. Rural and small-town entrepreneurs were among those reporting better business conditions and more willingness to expand, thanks in part to Congress making the 20% Small Business Deduction permanent.
The percentage of owners who see now as a good time to grow climbed to 16%, up five points from June. Still, the Uncertainty Index jumped eight points, as many await clarity on trade policy and other issues. Labor quality once again ranked as the top concern, cited by 21% of owners — a growing challenge for Main Street employers from farm supply stores to local manufacturers.
Other findings show:
– 13% rated their business health as “excellent” and 52% as “good.”
– 11% cited poor sales as their top problem — the highest since early 2021.
– 22% plan capital outlays in the next six months, with many focusing on equipment, vehicles, and facility upgrades.
– A third of owners reported job openings they couldn’t fill, often due to few or no qualified applicants.
NFIB says making the Small Business Deduction permanent has boosted confidence, but labor shortages, interest costs, and inflation pressures remain on the minds of rural business owners.