U.S. small business confidence edged up to an eight-month high in July, as concerns about inflation fell to the lowest level in nearly two years, a report released on Tuesday showed, Reuters reported. The National Federation of Independent Business (NFIB) said its Small Business Optimism Index rose nine-tenths of a point to 91.1 last month, hitting the highest level since November 2022. Disinflation in July appeared to resonate with small businesses as only 21% stated that inflation was their biggest concern - the lowest reading since November 2021 and down 13 points from a year earlier. The continued improvement in optimism appeared to translate in investments in labor and capital investment plans: More than a quarter of firms reported plans to invest in capital, and 17% reported plans to increase employment, both 2 percentage points higher than in the prior month.
