Optimism among small businesses in the United States has risen to its highest since February 2022

The optimism among small businesses in the United States rose to a more than two-year high in July, with a brighter outlook for the economy and sales. The National Federation of Independent Business (NFIB) Small Business Optimism Index rose 2.2 points to 93.7, marking its fourth consecutive monthly increase and setting a record for the longest streak of increases since before the outbreak of the pandemic. Although there is still pessimism about future business conditions, fewer companies expect economic deterioration than at any point since November 2020. This factor is almost entirely responsible for the rise in confidence index, while four other sub-indices that make up overall confidence also improved in July. In addition to economic expectations, net proportion of businesses expecting sales growth over next few months has risen to highest level this year. While optimism index remains below pre-pandemic levels, its rise comes with good news on inflation front: report shows net proportion of firms planning price hikes fell to 24%, lowest since April 2023; smaller percentage reported having already raised prices last month.