- Hiring plans jump 9 points to 20%, highest since October 2022
- Share of owners with unfilled job openings rises 4 points to 36%
- Labor supply and quality top concerns for owners, NFIB says
WASHINGTON, Aug 11 (Reuters) - U.S. small-business sentiment increased to an 11-month high in July amid a surge in the share of owners reporting plans to boost hiring, suggesting that last month's slump in nonfarm payrolls was probably temporary.
The National Federation of Independent Business said on Tuesday its Small Business Optimism Index rose 2.4 points to 99.8 last month, the highest level since August 2025 and surpassing its 52-year average of 98.0.
The survey's uncertainty index, however, increased 2 points to 91 amid a rise in owners saying they were not sure this was a good time to expand. Owners were also uncertain about capital expenditure plans.
"Uncertainty remains high, most likely due to the status of the war with Iran," said NFIB Chief Economist Bill Dunkelberg. "A meaningful resolution will be a major plus for the economy and small business owners."
The survey's employment index rebounded 1.9 points to 102.1 following four straight monthly declines. The share of owners planning to create new jobs over the next three months jumped 9.0 points to 20%, the highest level since October 2022. Those plans could, however, run into worker shortages.
The survey's uncertainty index, however, increased 2 points to 91 amid a rise in owners saying they were not sure this was a good time to expand. Owners were also uncertain about capital expenditure plans.
"Uncertainty remains high, most likely due to the status of the war with Iran," said NFIB Chief Economist Bill Dunkelberg. "A meaningful resolution will be a major plus for the economy and small business owners."
The survey's employment index rebounded 1.9 points to 102.1 following four straight monthly declines. The share of owners planning to create new jobs over the next three months jumped 9.0 points to 20%, the highest level since October 2022. Those plans could, however, run into worker shortages.
From construction to agriculture, labor availability dominated comments from owners. Some said "finding or having qualified skilled labor applicants is nonexistent," while others said "the labor workforce is getting slim, and it seems like quality people are getting harder to find in labor fields."
Reports of inflation as the most important problem dropped for the first time this year, with only 14% of businesses saying it was an issue, down 7 points from June.
Reporting by Lucia Mutikani; Editing by Sonali Paul
Source: Reuters