Small business optimism ticked higher in July, even as uncertainty over tariffs and trade policy clouded outlooks, Inc. writes.
The National Federation of Independent Business reports that its confidence index rose 1.7 points to 100.3, well above its 52-year average, with 65% of members rating their business health as excellent or good. Expectations for better economic conditions jumped 14 points from June, and 22% plan capital investments in the next three months.
Still, NFIB’s uncertainty index surged eight points amid concerns about costs, supply chain disruptions, and policy impacts following President Trump’s finalization of broad import tariffs. Despite challenges, U.S. business formation remains strong: 2.9 million new companies launched in the first half of 2025, up 5.6% year over year, including a 14% June spike. Industry voices say the sustained startup growth shows entrepreneurs are forging their own futures despite economic headwinds.
NFIB chief economist Bill Dunkelberg says recent tax changes and policy clarity in coming months could boost confidence further.
