WASHINGTON, Aug. 12 (Xinhua) -- U.S. small business optimism is on the rise, according to data released Tuesday, but the general public remains disgruntled with the economy.
The Small Business Optimism Index rose 2.4 points in July, climbing above its 52-year average and marking the highest level since August 2025, according to the National Federation of Independent Business (NFIB).
"Small business optimism rose again in July, with a significant increase in owners expecting to hire, accompanied by an improvement in plans to make capital expenditures," said NFIB Chief Economist Bill Dunkelberg.
"Although uncertainty is currently elevated, Main Street anticipates that business conditions will continue to improve," Dunkelberg said.
Indeed, 20 percent of small business owners plan to create new jobs over the next three months, up 9 points from the month prior. Hiring plans are at their highest level since October 2022, according to the report.
Planned price increases have dropped notably from June, while more small business owners plan to make capital outlays in the next six months, the report said.
However, the general public is feeling much less optimistic.
According to a Gallup poll released last month, the percentage of Americans rating economic conditions as excellent or good stood at a mere 22 percent in July, while those calling conditions poor were tagged at 44 percent.
This comes over a year into U.S. President Donald Trump's second term, and after campaign promises to bring down the inflation that took hold during the previous administration. It also comes amid skyrocketing home prices and elevated interest rates.
Some experts said that despite small business optimism, the general feeling about the economy is negative -- and that could hurt Republicans in the midterm elections.
Brookings Institution Senior Fellow Darrell West told Xinhua: "It is good that small businesses are feeling optimistic. But the general public remains pessimistic about the economy and many individuals continue to have problems making ends meet."
Other experts expressed similar thoughts and noted an overall discontent among Americans.
Christopher Galdieri, a political science professor at Saint Anselm College in the northeastern state of New Hampshire, told Xinhua: "It's important to remember that small business owners may evaluate the economy differently than workers do."
"What we're seeing in the public at large is a general economic discontent, regardless of what economic indicators say," Galdieri said.
"This isn't even specific to Trump. We saw the same thing at work in the (former President Joe) Biden years, even after inflation cooled down and employment was up," Galdieri said. ■
