US business sentiment falls 8% as economic concerns persist
PFG•U.S. business sentiment fell 8% from July to 6.02 out of 10, matching its lowest reading since the index began in 2021. Small and midsize business sentiment hit a record low of 5.28, and optimism about the 12-month economic outlook fell to 40%.
1. Sentiment declines
Principal Financial’s quarterly Well-Being Index showed U.S. business sentiment falling 8% from July to 6.02 out of 10, matching the April 2025 low and the weakest reading since the index began in 2021. Sentiment among small and midsize businesses hit a record low of 5.28, while large businesses held nearly steady at 7.08; optimism about the economic outlook over the next 12 months fell 10 percentage points from July to 40%.
2. Employer adjustments
Among employers making operational adjustments in 2026, 93% developed or redeployed existing employees, and 58% used AI and automation to change work.
