Up 14.4 points over last year, buoyed by easing inflation and low unemployment
July 2026
- Index Value (Jul):47.2
- Previous Month:50.5
- MoM:-3.3
- YoY:+14.4 (Jul 2025 = 32.8)
The Experian Small Business Index™ declined 3.3 points to 47.2 in July. It remained 14.4 points above its level a year ago, indicating that small business conditions continue to be stronger than they were a year ago despite month-to-month softening.
Small businesses showed increases in utilization and 91+ past-due rates, which contributed to the decline, while increased risk in the owners’ consumer files also weighed on the index. Owners showed increases in 60+ past-due revolving account balances and utilization rates on balances over 90 days past due. Small business owners may also be facing tighter access to credit. Both the number of new consumer trades opened by small business owners and their approval rate on new inquiries fell.
On the macroeconomic side, inflation eased modestly in July. Headline inflation declined from 3.5% in June to 3.4% in July. Rent and food inflation were flat or down slightly in July, and producer price inflation eased to 4.7% from 5.5% in June. The PCE price index and core PCE (excluding food and energy) were both unchanged compared to June. Core PCE is lower than overall PCE, with elevated fuel costs contributing to the difference. Prices for both regular and diesel fuel increased 2% and 8%, respectively, over the last month. Easing inflation is good news for small businesses and their owners alike, and this may have contributed to improved business owner optimism, as measured by the NFIB.
The continued easing of inflation and low unemployment puts small businesses in a stronger position than they were a year ago.
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The Experian Small Business Index declined by 0.7 in June, but remains well above last years level on strong small business sentiment.
Small businesses navigated headwinds in May as uncertainty began to rise May 2026 Index Value (Mar): 51.2 Previous Month: 52.2 MoM: -1.0 YoY: +6.0 (May 2025 = 57.2) The Experian Small Business Index™ decreased slightly, falling 1 point to 51.2 in May, but remained 6 points higher than a year ago. Several credit risk factors supported the index in May. Past-due balances on business owners’ consumer accounts declined, as did later-stage delinquencies on their commercial accounts. However, several factors weighed on the index. Commercial credit utilization increased, and there was a sharp rise in consumer public records filings. While public records are typically a lagging indicator, this trend warrants monitoring in the coming months. In the broader economy, the unemployment rate declined to 4.2% from 4.3%, and GDP grew by 2.1%, exceeding expectations. Several measures of inflation also increased in May. Headline inflation rose from 3.8% in April to 4.2%, while core inflation, which excludes food and energy, increased from 2.8% to 2.9%. Energy prices were 23.5% higher than a year earlier and likely contributed to broader inflationary pressures. Food prices declined 0.1%, while rent increased 0.1%. Business formation remained strong, with 524,000 new business applications filed in May, up from 505,000 in April. This occurred despite the NFIB Uncertainty Index increasing to 91. The NFIB Small Business Optimism Index edged down to 95.3 in May from 95.9 in April. Explore Experian Small Business Index Related Posts
The Experian Small Business Index gained 3 points in April, driven by strong business formation, increased business credit demand.
