Confidence Climbs as Small Businesses Evaluate Prices [WSJ/Vistage July 2026]

Small business confidence jumped in July, driven by more favorable profit projections as well as investment plans over the next 12 months. This is according to our monthly survey of small business CEOs conducted in partnership with The Wall Street Journal. The WSJ/Vistage Small Business CEO Confidence Index rose to 92.0, up over 4 points from 87.4 in June and nearly 6 points above last July.

Although U.S. inflation for May was lower than expected, rising costs are still driving small businesses to be fluid with prices. In the past 3 months, more than 4 in 10 (42%) small businesses increased prices; over the next 3 months, 33% plan to do so.

Protecting profits is the real story behind this month’s confidence gain. The proportion of small businesses that expect increased profits rose above 50%. While some small businesses may have been optimistic based on the pending expiration of the Section 122 tariffs, the new tariffs just announced may create a new source of costs for CEOs to evaluate.

Since the survey was conducted before the announcement of forced-labor tariffs, as well as the Brazil- and Canada-specific tariffs, the impact on small business confidence will be reflected in next month’s data. Small business leaders will need to track these changes, know when they take effect and determine what areas of their supply chain or customers base will be affected.

Small businesses are not raising prices because the economic environment supports increases; they are raising them because their own costs have not given them a choice. This necessitates a very strategic approach to avoid losing customers.

How Are Customers Responding to Price Increases?

The pricing plans of small businesses are shaped more by current economic pressures, but strategy remains key to making adjustments. As tariffs, materials, and labor are all increasing, price increases read more like the cost of doing business anywhere. In response to how customers are reacting to price increases, Mark Dohnal, President of Ontech Systems in Milwaukee, Wisconsin, says the customer response is initially to push back, with an understanding that prices are increasing everywhere. A key factor for small businesses is having a clear competitive advantage. Dohnal demonstrates this with clients, explaining, “We need to show that our quality of service is better and above standard. We’ve added some more tools, so clients see value there, too.”

However, acceptance may vary across industries, and some are losing customers due to price increases. Jeff Duperon, President of TNE International, LLC — a global supply company specializing in parts and assemblies based in Rochester, Michigan — cited a weakening U.S. dollar as one of several factors driving costs higher. “Increases are driven by tariff changes, material inflation, and USD currency devaluation. In some cases, this has caused my customers to lose business.”

Founder of Boost Pricing, Casey Brown says that small businesses need to be customer focused in their pricing strategies, communicate transparently, and remind customers of the value they provide. In collaboration with Vistage speaker and Senior Pricing Consultant, Doug Butdorf, they offer the following 5 suggestions for CEOs:

1. Price to forward costs, not trailing ones. In a market where many input costs are up double digits (again), recent price increases likely only recover costs companies already ate. Build the pricing plan with a 6-to-12-month cost forecast.
2. Fix the contracts before you fix the price. Fixed-price contracts are a primary reason firms are absorbing rather than passing through. Escalator language, index references, shorter quote validity windows, and defined review dates are essential in long-term contracts.
3. Segment, don’t blanket. Across-the-board increases are simultaneously too small where you have power and too large where you don’t. Segment by competitive position, switching cost, size, geography, service intensity, account tenure, and more to surgically and strategically raise price.
4. Don’t let the increase die inside your own company. Too many price increases fall short because salespeople pre-discount, apologize, or offer concessions. The field will deliver less than targeted unless they’ve been trained and equipped to execute price increases with excellence.
5. Be proactive and review frequently. The CEOs who think “we already did price” and turn their attention away from consistent, rigorous review of pricing strategy and execution are the ones who will be squeezed at the end of the year, reacting, and pricing into headwinds that will be stronger than they are now. 

Are Small Businesses Flexible in Pricing Strategies?

Delving into the idea of reviewing price adjustments frequently, data shows that a recent price increase doesn’t necessarily mean small businesses aren’t planning to make additional adjustments. Those considering another increase often face ongoing cost pressures — such as new tariffs — and are proactive in protecting profitability.

Of the 42% of small businesses who raised prices in the last 3 months:

• 47% plan additional increases in the next 3 months
• 49% plan to hold prices steady
• 4% are uncertain at this time

Conversely, of the 33% of small businesses planning to raise prices in the next 3 months:

• 60% already raised prices in the last 3 months — these are compounding increases
• 40% did not raise prices in the last 3 months

“Our cost of welding consumables, materials, commercial insurance, and health insurance have each gone up 12-15% since our last price increase (about a year ago). We will have to increase our prices again this year to balance it out,” says Rob Sublette, President of Mountain Man Welding and Fabrication in Denver, Colorado.

July Highlights

The July 2026 WSJ/Vistage Small Business CEO Confidence Index was calculated from an online survey sent to leaders who are active Vistage members of CE and SB groups in the U.S. The survey, conducted between July 3 and 13, 2026, collected data from 362 respondents with annual revenues ranging from $1 million to $20 million. The Index is calculated based on favorable minus unfavorable responses from this set of standard questions, plus 100, anchored to June 2012 = 100.

How Small Business Sentiment Has Changed Since Last Month

• Current Economy: Sentiment about the U.S. economy compared to a year ago improved notably. The proportion of small business leaders who believe it is worse than a year ago fell to 34%, down from 48% last month. Optimism also improved, with 23% reporting improvements, up from 18% last month.
• Future Economy: Forward-looking sentiment ticked higher, as 28% expect the economy to improve in the next 12 months, up from 27% in June, while 21% expect it to worsen, down from 30%.
• Revenue Projections: Nearly two-thirds of small business leaders (62%) anticipate revenue growth in the year ahead, matching June’s pace. 11% expect declines, down slightly from 12%.
• Profitability Projections: The share expecting improved profitability rose to 51%, up from 48% in June, while those expecting declines held roughly steady at 19%.
• Fixed Investment Plans: Investment plans were little changed, with 39% planning to increase fixed investment in the next 12 months, up slightly from 38%, while 15% plan to scale back, unchanged from June.
• Workforce Expansion Plans: Half of small business leaders (49%) plan to add staff in the next 12 months, up from 47% in June. Just 9% plan reductions, down from 11%.

To explore the full July 2026 WSJ/Vistage Small Business data set, visit our data center or download the infographic.

The August 2026 WSJ/Vistage Small Business CEO Confidence Index will be calculated from responses to the monthly WSJ/Vistage Small Business CEO survey, conducted between August 3 and 10, 2026 to active members of Vistage CE and SB groups reporting $1-20 million in annual revenue.

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