Small Business Optimism Index dips in August

OLYMPIA — Small business optimism declined in August but remained above its long-term average, according to a survey released Tuesday by the National Federation of Independent Business.

The NFIB Small Business Optimism Index fell to 98.7, down 1.1 points from July, when the index reached its highest level since August 2025. The August reading remained above the index's 52-year average of 98.

Expectations for improved business conditions fell 5 points to a seasonally adjusted net 10%, while a net negative 9% of owners reported higher nominal sales during the previous three months, down 5 points from July and the lowest reading since November 2025.

Inflation was cited by 16% of owners as their most important problem, up 2 points from July and tied with taxes as the second-most frequently cited issue.

Hiring challenges also eased slightly. A seasonally adjusted 35% of owners reported job openings they could not fill, down 1 point from July. Among the 56% of owners hiring or attempting to hire, 82% reported few or no qualified applicants.

“Uncertainty remains elevated among small business owners as they face a mixed set of challenges with weakened sales, supply chain disruptions, and inflation pressures,” NFIB Chief Economist Bill Dunkelberg said. “While expectations for the overall economy dimmed, Main Street owners remain largely positive in the health of their own businesses.”

The NFIB Research Center has conducted quarterly small business economic surveys since 1973 and monthly surveys since 1986. Respondents are randomly selected from NFIB membership. The latest survey was conducted in August.