Small Business Optimism Fell to 98.7 in August. The Sales Reading Was the Weakest Since November 2025.
NFIB's index gave back most of July's jump. A net negative 9% of owners reported higher sales, 62% reported supply chain disruptions, and a net 28% still plan to raise prices.
The short answer
- The NFIB Small Business Optimism Index fell 1.1 points to 98.7 in August, in a report released September 8, 2026. It remains slightly above the 52-year average of 98.0.
- A net negative 9% of owners reported higher nominal sales in recent months, the weakest reading since November 2025.
- Labor quality was the most-cited single problem at 23%, with inflation and taxes tied at 16% each.
- A net 28% of owners plan price increases over the next three months, above the historical average.
The National Federation of Independent Business released its August Small Business Optimism Index on September 8, 2026. The index fell 1.1 points to 98.7. That is a touch above the survey's 52-year average of 98.0, and it undoes most of July's 2.4-point jump to 99.8, which had been the highest reading since August 2025. Forecasters had generally expected a smaller decline, to around 99.3.
The single most useful line in the report is not the headline. It is sales.
What Moved
- Optimism Index: 98.7, down 1.1 points from July's 99.8.
- Uncertainty Index: 89, down 2 points, still far above its historical average of 68.
- Small Business Employment Index: 101.8, down 0.3 points.
- Nominal sales: a net negative 9% of owners reported higher sales in recent months, the weakest since November 2025.
- Unfilled job openings: 35% of owners, 11 points above the historical average.
- Capital outlay plans: 24% plan outlays in the next six months.
- Supply chain disruptions: 62% of owners reported experiencing them.
A net negative reading on sales means more owners reported lower sales than higher ones. That is a different signal from a soft confidence number. Confidence indices move with the news; the sales question asks owners what already happened in their own businesses.
The Price Side Did Not Soften
A net 28% of owners said they plan price increases over the next three months, above the historical average for that series. Weakening sales and firm pricing plans are an awkward pair. It suggests owners are passing through costs they are absorbing rather than raising prices into strong demand — and the 62% reporting supply chain disruptions points at where at least some of those costs are coming from.
On problems, labor quality was cited most often, by 23% of owners. Inflation and taxes were tied at 16% each. Asked about the health of their own business, 11% called it excellent and 57% good.
Uncertainty remains elevated among small business owners as they face a mixed set of challenges with weakened sales, supply chain disruptions, and inflation pressures.
Sources
- Small Business Economic Trends: Small Business Optimism Index, August 2026 — National Federation of Independent Business
- NFIB Business Optimism Index falls to 98.7 as small business confidence slips below forecast — Crypto Briefing
Spotted an error? Tell our corrections desk.
How this article was produced
- Responsible desk:
- Economy & Macro
- Published:
- 9 Sept 2026, 05:05 UTC
- Last updated:
- 9 Sept 2026, 05:05 UTC
- Verification:
- Figures and quotations checked against primary sources under our fact-checking policy and editorial standards.
- Independence:
- No advertiser or affiliate partner had any involvement in this article — see editorial independence and how we make money.
- Corrections:
- Report a factual error.
This article is general financial information and journalism, not personalised financial, investment, tax or legal advice.