Confidence among U.S. small businesses rose in July as hiring plans improved. The National Federation of Independent Business said Tuesday that its small-business optimism index rose to 99.8, its highest level since August 2025.

Economists polled by The Wall Street Journal expected a reading of 97. The NFIB survey provides a monthly snapshot of small businesses in the U.S., which account for nearly half of private-sector jobs. Small businesses are often more sensitive than larger firms to sudden price fluctuations, higher interest rates and broader economic uncertainty.

“Although uncertainty is currently elevated, Main Street anticipates that business conditions will continue to improve,” the NFIB’s Chief Economist Bill Dunkelberg said.