Executive Summary

Small Business Health Stable as Concerns about Business Environment Grow

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Index Steady As Inflation Concerns Grow

The Q2 2026 U.S. Chamber of Commerce Small Business Index is 66.5, largely stable from last quarter’s Index score of 67.0, although inflation concerns are back up near record highs for the Index. The overall score is slightly above the reading from this time last year (65.2).

57%

of small businesses say inflation is their biggest concern

Small business owners' concern about inflation appears to be showing up in less confidence in their local economy and their plans to invest.

Positive views on the national economy – which are consistently lower than the local economy – remain similar to a year ago. Thirty percent say the national economy is in good health compared to 34% a year ago.
Yet positive views of the local economy fell eight points from a year ago with 33% rating the local economy as good this quarter, compared to 41% a year ago.
Plans to increase staff in the next year are up slightly to 35% this quarter (30% Q1 2026), but down seven points from a year ago (42% in Q2 2025).
Plans to invest in the upcoming year came in at 38%, nearly ten points lower than a year ago (47% in Q2 2025).

It is clear that small business owners remain confident in their own operations but renewed concerns about inflation are weighing on their view of the local economy and tempering the confidence they have in their plans to hire and invest.

Tony Hill - Managing Partner of Edwards & Hill Office Furniture, Annapolis Junction, Maryland

Index Highlights

Index score remains stable.
The Small Business Index is at 66.5 this quarter, largely stable from 67.0 last quarter and slightly higher than Q2 2025 (65.2).
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Inflation concerns near record high.
Inflation (57%) is the top challenge facing small businesses, up slightly from last quarter (53%) and up significantly from this time last year (48%). The record high was 58% in Q1 2025.
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Fewer are “very” comfortable with their cash flow.
16% are very comfortable with their cash flow, down 15 percentage points over the past three quarters.
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Business health holds steady.
69% of small businesses say their business is in good health, unchanged from last quarter, but fewer rate their business health very good (27% vs. 32%).
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View of national economy stays the same.
30% say the U.S. economy is in good health, in line with Q1 2025 (28%).
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More small businesses see their local economy as “very poor.”
Compared to Q1, more small businesses rate the national economy (20% vs. 15%) and their local economy (13% vs. 7%) as “very poor.”
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More expect to hire.
35% expect to increase staffing in the next year, an increase from Q1 (30%) but a decline from this time last year (42% in Q2 2025).
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More expect increased revenue.
66% expect to increase revenue in the next year, up from last quarter (61%) and in line with Q2 2025 (65%).
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Services see dimmer economy.
Like last quarter, businesses in services hold more pessimistic views of the national and local economies. Only 15% in services see a good U.S. economy, but overall 30% of small businesses do.
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Small Business Index Q2 2026

Small Business Outlook Holds Steady as Inflation Concerns Grow

July 15, 2026