The NFIB Small Business Optimism Index fell to 98.7 in August 2026 from 99.8 in July, missing the 99.3 consensus forecast. Actual sales weakened, with a net negative 9% of owners reporting higher nominal sales over the past three months, the lowest result since November 2025. Inflation rose to 16% as the single most important problem, tying taxes for second place among small-business concerns. Reports citing labor quality or availability and labor costs eased, with labor costs reaching their lowest level since March 2021. Expectations for better business conditions also deteriorated. NFIB Chief Economist Bill Dunkelberg said uncertainty remained elevated amid weakened sales, supply-chain disruptions and inflation pressures, even as owners remained largely positive about the health of their own businesses.