Small businesses report rising confidence in economy for the first time all year

For the first time all year, small business owners in Colorado and the rest of the country are reporting heightened optimism about the future of their business.

The National Federation of Independent Business released its latest monthly findings early Tuesday morning, and it shows that optimism ticked up 3 points after tumbling nearly 10 since the beginning of the year.

The report releases monthly and is a composite of responses from small businesses owners around the country as a snapshot of small business health.

In an interview with Denver7, the group’s executive director Holly Wade said the rise is primarily due to the Trump Administration’s changing tariff policies which have allowed for a little breathing room.

“[Small businesses] are holding on to a bit more money, so they’re not investing quite as much in their business with capital spending plans or hiring plans,” Wade said. “It did pick back up a little bit this last month. Maybe some of that could be due to the pause in these tariffs and trade negotiations as they move through those conversations.”

In the months leading up to November’s election, the NFIB Optimism Index soared as small business owners nationwide anticipated more free market policies and less regulation.

From March 2024 through December 2024, the index jumped more than 25 points — from 88.5 to 105.1 — after hovering near 90 for more than two years. That number has sharply declined every month, however, since the president has taken office amid his administration’s changing tariff policies.

That changed in May as the S&P 500 gained 6% and confidence in the American economy strengthened.

Still, the index shows small business worry.

Taxes are now the leading concern, according to the survey ,with 18% of small business owners responding as such. The concerns rose amid talks of the president’s “big beautiful tax bill” which would extend tax breaks to individuals, particularly tipped workers.

Other top concerns for small businesses, according to the index, include labor quality and inflation.