NFIB Small Business Optimism Index (SBOI) for AUGUST 2026
The National Federation of Independent Business® (NFIB®) released its Small Business Optimism Index (SBOI) for August, 2026:
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Predicted: 99.0
CHART: NFIB Small Business Optimism Index AUGUST 2026 Update
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Predicted: 99.0
- Actual: 98.7
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- Change from Previous Month: -1.10% (-1.1 points.)
- Change from A Year Ago: -2.08% (-2.5 points.)
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- The baseline "100" score is associated with 1986 survey data.
From The Report:
"...CREDIT MARKETS
In August, the net percent of owners expecting easier credit conditions rose 2 points to a net -2% (seasonally adjusted). This marks the highest level since December 2024. A net 3% reported their last loan was harder to get than in previous attempts, down 2 points from July. In August, a net 4% of owners reported paying a higher interest rate on their most recent loan, unchanged from July. The average interest rate paid on short-maturity loans was 7.5% in August, down 0.4 points from July. Twenty-five percent of all owners reported borrowing regularly, down 2 points from July, and remaining below the historical average of 34%.
Though still high, the inflation metrics were flat in August. In August, a seasonally adjusted net 31% of owners reported raising average selling prices, unchanged from July but well above the historical average of net 14%. Unadjusted, 38% reported higher average prices (down 2 points), and 8% reported lower average selling prices (unchanged). Looking forward to the next three months, a net 28% (seasonally adjusted) plan to increase prices, unchanged from July. This is also above its historical average (net 22%), though with a smaller gap than actual prices. Reports of inflation as the single most important problem
picked up in August. Sixteen percent of business owners cited inflation as their single most important business problem, up 2 points from July and ranking the second top issue, tied with taxes. August’s reading remains elevated, with the historical average at 7%.QUOTES on INFLATION
“Outside of the challenge of getting good productive help, inflation has been the hardest to navigate.”
– Manufacturing, IN
“The increase in the costs of aluminum, steel, and other raw materials has raised our inventory costs by more than 40% over our levels at the beginning of 2025.”
– Manufacturing, MO
"The Iran [invasion] and shipping disruptions are greatly affecting agricultural input costs."
-Agriculture, IN
“Labor, chemicals, and taxes are always our biggest expenses, and they all just keep going up with no end in sight. Daunting and scary.”
– Agriculture, NY
“Cost pressures continue, with insurance and labor benefits increasing at a higher rate than supplies, etc. I feel many small businesses are in a wait-and-see mode for further business expansion.”
– Services, OH
“The costs of energy and goods (especially here in Maryland) have increased dramatically. This has impacted our bottom line, which of course impacts pricing, which impacts our customers’ ability to afford us.”
– Services, MD
“The cost of fuel is my number one expense, so this $4.00 and above gas price is really affecting my deliveries. I’ve been absorbing it somewhat by changing my delivery routes, but eventually I’m going to have to increase the cost of things I sell!”
– Wholesale, PA
“The price of energy adversely affects sales.”
– Services, TX
“Input costs have gone up dramatically, particularly for fuel and fertilizer...The financial squeeze is significant! Farmers can’t control prices or weather.”
– Agriculture, OHLABOR
“The quality of skilled labor is affecting my growth. I have given up on looking. My business is service-based, and the demand for accountants is increasing. If I could find the personnel, I could easily double, if not triple, my income.”
– Professional/business services, VA
“My problem is that no one wants to work. I have advertised in all the areas I know of, and we have had a total of zero applications. In thirty years of business, this has never happened.”
–Services, TN
“Since 2023, our business has had a hard time hiring employees – good technician mechanics with experience.”
– Services, TX
“It is very difficult to find dental assistants or dental hygienists on a permanent basis.”
– Professional/business services, OR
“Labor is the biggest challenge we face. We need H-2B visas to be more readily available, and we need them to be easier to navigate. Reduce the red tape.” – Agriculture, IN
“We need to bring back and step up trade education in all areas.”
– Services, VT
“Getting control of the minimum wage is a big problem! I am a small business and hire a lot of first time employees. Because I have to start a first timer at $15/hour, there is not much left to reward my long-term employees. Merit raises become a thing of the past.”
– Retail, AZ
“Imports coming into the USA at way below market price and getting employees are a huge problem for agriculture. Many of us would no longer be in business if it was not for the H-2A program.”
– Agriculture, MT
“We need to get rid of the Minnesota Paid Leave program for seasonal and temporary employees.”
– Agriculture, MN
“I own and operate a childcare business. I am seeing my costs increase dramatically, by more than 15% annually, and I am having an increasingly hard time finding staff. Online job postings receive a lot of interest and applications, but only about a third at best respond to interview requests. […]”
– Professional/business services, OHBUSINESS + ECONOMIC CONDITIONS
“Federal policies are creating unstable economic conditions for small businesses. Customers are uncertain about future economic conditions and thus unwilling to make major investments in future development.”
– Construction, OR
"We are experiencing a slowdown and don't plan to hire more employees at this time. The economic outlook is very uncertain and will likely get worse."
- Professional/business services,
“The opportunities to grow the business are incredible, but the resources [needed] to grow the business are very expensive and very hard to reach for my small business.”
– Retail, OH
"The economy has been very poor since early 2025. The volatility in trade and tariff policies has hurt construction in our area... I am currently in a hold pattern for growing our business because the economic conditions are not favorable now."
- Construction, OR
“Although our business is steady, we have found that our customers are cash-poor and using credit for their transactions. In the end, this cuts down on our sales as our patrons have less money in the end. […]”
– Retail, PA
"The impact of cost increases due to tariffs and supply chain challenges... is meaningful."
- Retail, NH
"Running a repair shop, we generally judge how busy we are by how far out we are scheduled. Over the last month or two, the schedule has definitely gotten better than the beginning of the summer. Our hope is it continues in that direction, as winter is typically slower."
- Services, MT
“It is hard to grow. We are mostly trying to maintain what we have.”
– Wholesale, PA
“Until the [Iran invasion] started, we were doing great. We had our best month ever in March 2026, and following was a drop of 60%.”
– Services, AZ
“I am awaiting the end of the [Iran invasion] to make some bigger financial decisions for my business.”
– Services, WA
“The business outlook is good as long as the weather is proper for syrup production next spring.
[…]”
– Agriculture, NY..."
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- Previous Month's SBOI: 99.8
- SBOI, 12-Months Previous: 100.8
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Labels: business, Credit_Markets, FedPrimeRate, FedPrimeRate.com, hard_data, inflation, Interest_Rates, jobs, NFIB, Small_Business, Small_Business_Optimism_Index, Small_Business_Outlook, soft_data
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posted by Steve Brown | 9/08/2026 01:40:00 PM
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