U.S. Chamber Index shows stable small business confidence amid inflation concerns

Small business confidence remained steady during the second quarter despite growing concerns about inflation, according to the latest U.S. Chamber of Commerce Small Business Index.

The index measured 66.5 in Q2 2026, compared with 67.0 in the first quarter and 65.2 in the second quarter of 2025.

About 69% of small business owners reported that their businesses were in good health, up slightly from 68% a year earlier. However, 57% identified inflation as their top concern, up from 48% in Q2 2025.

Positive views of the national economy remained at 30%, while confidence in local economies declined to 33% from 41% a year ago.

“Small business owners are proving, once again, that they know how to adapt,” Tom Sullivan, senior vice president of small business policy at the U.S. Chamber of Commerce, said. “Even with inflation topping the list of challenges, they are still confident in their own operations and expect more revenue growth and hiring in the year ahead.”

Business owners expressed greater optimism about revenue and hiring over the next year. About 66% expect revenue to increase, up from 61% in the first quarter, while 35% plan to add employees, up from 30% in Q1 but down from 42% a year ago. Confidence in cash flow slipped slightly, with 69% saying they were comfortable with their cash flow, down from 72% in Q2 2025.

Investment expectations remained lower. About 38% of respondents said they planned to increase investment during the next year, compared with 37% last quarter and 47% a year earlier.

“The local economy seems strong in terms of consumer activity, but many of our clients are struggling due to loss of sponsorship revenue, uncertainty, government spending changes and other factors that are restricting business investment,” Bryan Owen, owner and co-CEO of Between Pixels, said.

The U.S. Chamber of Commerce Foundation also reported increased adoption of artificial intelligence among small businesses, with employers saying the technology has improved productivity, work quality and employees’ ability to take on more complex tasks.

The quarterly index, conducted by Ipsos, surveyed 751 small business owners and operators nationwide from May 19 through June 4.