The NFIB Small Business Optimism Index rose 2.1 points in June to 97.4, nearing its 52-year average of 98. Expectations for better business conditions and real sales improved substantially, primarily driving the increase. The Uncertainty Index fell 2 points from May to 89 but remained well above its historical average of 68.
According to NFIB’s monthly Jobs Report, the NFIB Small Business Employment Index remained essentially flat at 100.2 in June. A seasonally adjusted 32 percent of small business owners reported job openings they could not fill, up 3 points from May’s lowest level since May 2020.
“Current economic conditions present small business owners with both encouraging developments and ongoing challenges,” NFIB Chief Economist Bill Dunkelberg said. “Lower fuel costs provide welcome relief for businesses as well as consumers, with firms anticipating improved operating conditions over the next six months. While there have been improvements in the overall environment, high interest rates and modest economic growth are causing owners to approach hiring and capital spending with caution.”
NFIB State Director Rosemary Elebash said the national survey reflects conditions in Alabama.
“Inflation is still a problem, and many of our members are still struggling to find people to fill the positions that are available,” Elebash said. “So, while small business optimism is improving, there are still some obstacles to overcome.”
Key findings from the national survey include:
- Job openings and hiring plans rebounded in June. A seasonally adjusted 32 percent of owners reported job openings they could not fill, up 3 points from May. A seasonally adjusted net 11 percent plan to create new jobs in the next three months, up 2 points. The improvement may represent a correction from May’s decline.
- Twenty-one percent of business owners cited inflation as their single most important business problem, up 3 points from May and the highest reading since October 2024. Inflation ranked as the top problem.
- The net share of owners raising average selling prices rose 2 points from May to a seasonally adjusted 38 percent. Actual price increases have now risen for four consecutive months, reaching their highest level since January 2023. However, the share of owners planning to raise prices declined. A seasonally adjusted net 32 percent plan to increase prices over the next three months, down 2 points from May’s highest reading since July 2022.
- The seasonally adjusted net share of owners expecting better business conditions over the next six months rose 10 points in June to 13 percent, improving for the first time this year.
- The net share of owners expecting higher real sales volumes during the next quarter rose 8 points from May to a seasonally adjusted 9 percent.
- A seasonally adjusted 20 percent of small business owners plan to make capital expenditures in the next six months, up 4 points from May and the highest reading of the year.
- A seasonally adjusted net 0 percent of owners viewed current inventory stocks as “too low” in June, up 4 points from May and the highest level since May 2025.
- The average interest rate paid on short-term loans was 7.4 percent in June, down 0.4 percentage points from May and the lowest level since October 2022.
- Twenty-two percent of owners reported borrowing regularly, down 5 points from May and 12 points below the historical average of 34 percent.
The full report is available on NFIB’s website.
The NFIB Research Center has collected Small Business Economic Trends data through quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. Respondents are randomly selected from NFIB’s membership. The organization releases the report on the second Tuesday of each month. NFIB conducted the latest survey in June 2026.
