According to the Oregon Business Report, reporting on the NFIB Small Business Economic Trends survey by J. Williams, small business optimism rose in July across construction, manufacturing, retail, and services, with the overall Optimism Index reaching 100.3. The rebound, which follows earlier declines this year, was driven largely by improved expectations for better business conditions.
Manufacturing emerged as the most optimistic sector, retail the least, while construction continued to face acute labor shortages and services tracked close to the national average. The survey also found that supply chain disruptions remain widespread, though a majority of owners rated their business health as good or excellent.
The NFIB Research Center noted that expectations for better business conditions were the primary driver of the overall rise in optimism.
“Small business optimism increased in all four industry sectors, with optimism being the highest in manufacturing primarily due to increased expectations for better business conditions in the next six months,” said Holly Wade, Executive Director of NFIB’s Research Center.
She added that supply chain challenges persist, with 64 percent of firms reporting disruptions, though 65 percent of owners rated their business health as excellent or good.
Construction’s optimism index climbed to 104.0, boosted by stronger expectations for future conditions, though labor shortages remain acute, with more than half of firms reporting unfilled job openings. Manufacturing optimism reached 106.5, the strongest of all industries, driven by higher sales expectations and the highest share of owners saying now is a good time to expand. Retail optimism edged up to 96.0 but stayed the weakest sector, weighed down by poor inventory satisfaction and negative earnings trends. Services rose modestly to 99.7, closest to the all-firm average, with gains in expansion and sales expectations offset by weaker inventory plans.
The July survey underscores both the progress and persistent challenges facing small business owners. While optimism is rebounding, concerns about supply chains, labor quality, and industry-specific headwinds continue to shape the outlook.