Source: Economics Group of Wells Fargo Bank, N.A.
Summary
Optimism Brightening Among Small Firms
Small business sentiment continued to climb in August. The NFIB Small Business Optimism Index rose half a point to 100.8, the third consecutive month above its historical average of 98. Growing sales prospects and solid earnings appeared to be the driving forces behind August’s improvement. Although uncertainty remained elevated, small business owners also appeared to receive greater clarity amid the unveiling of the administration’s tariff policy and successful passage of the One Big Beautiful Bill Act (OBBA). A drop in job openings at small firms raises some caution, however, supporting our expectation for the Federal Reserve to cut interest rates at its September meeting.