The NFIB Small Business Optimism Index rose 1.7 points in July to 100.3, above the 52-year average of 98. Contributing most to the increase in the index were respondents reporting better business conditions and reporting that it is a good time to expand.
In contrast to the Optimism Index, the Uncertainty Index climbed by eight points from June to 97. Twenty-one percent of small business owners reported labor quality as their most important problem, up five points from June and ranking as the top problem.
“Optimism among small business owners in New Jersey and nationwide improved in July following Congress’s vote to make the federal Small Business Deduction permanent and provide lasting tax relief for Garden State small businesses,” said NFIB New Jersey State Director Eileen Kean.
“Nevertheless, hiring remains a significant challenge for Main Street businesses as owners continue to report struggles finding qualified workers. Further, New Jersey small businesses still operate under very steep state tax and regulatory burdens.”
There was a notable improvement in overall business health in July. When asked to rate the overall health of their business, 13% reported excellent (up five points), and 52% reported good (up three points). Thirty-one percent said the health of their business was fair (down four points), and 4% reported poor (down three points).
The percentage of small business owners reporting poor sales as their top business problem rose one point to 11%, the highest level of poor sales since February 2021.
The net percent of owners expecting better business conditions gained 14 points from June to a net 36% (seasonally adjusted), above the historical average.
In July, 16% (seasonally adjusted) reported that it is a good time to expand their business, an increase of five points from June.
Eleven percent of owners reported that inflation was their most important problem in operating their business, unchanged from June’s lowest reading since September 2021.
As reported in NFIB’s monthly jobs report, a seasonally adjusted 33% of all small business owners reported job openings they could not fill in July, down three points from June and the lowest level since December 2020, though still above its monthly historical average of 25%.
The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. This survey was conducted in July 2025.
