03:41 PM EDT, 08/12/2025 (MT Newswires) -- US small business optimism rose more than expected in July amid hopes that owners will benefit from legislative and trade clarity, a survey by the National Federation of Independent Business showed Tuesday.

The NFIB small business optimism index increased 1.7 points sequentially to 100.3 last month. The consensus was for a marginal rise to a reading of 98.9 in a survey compiled by Bloomberg.

"Optimism rose slightly in July with owners reporting more positive expectations on business conditions and expansion opportunities," NFIB Chief Economist Bill Dunkelberg said. "While uncertainty is still high, the next six months will hopefully offer business owners more clarity, especially as owners see the results of Congress making the 20% small business deduction permanent and the final shape of trade policy."

The One Big Beautiful Bill Act, singed into law on July 4, permanently extends the 20% qualified business income deduction for small business taxpayers, the US Chamber of Commerce said in a July post. That deduction was scheduled to expire at the end of this year

On Monday, President Donald Trump signed an executive order to extend the tariff suspension on China for another 90 days. The US recently issued a list of new reciprocal tariff rates, ranging from 10% to 41%, on different countries. Washington has already finalized trade deals with several trading partners, including the European Union and Japan.

About 22% of small business owners reported labor quality as their single-most important problem, five points higher than the June figure, according to NFIB. Some 17% reported taxes as their biggest concern, down two points from June.

Business owners who considered inflation as their most-pressing problem continued to account for 11%, the lowest since September 2021.