U.S. small-business sentiment improved for a second month in July, with the National Federation of Independent Business Optimism Index climbing 1.7 points to 100.3, its highest level since February and slightly above the survey’s 52-year average. Respondents reported better business conditions and said it was a good time to expand, even though uncertainty about the outlook remained elevated. The rebound follows enactment of President Donald Trump’s “One Big Beautiful Bill,” which permanently extends a 20% deduction for pass-through business income and doubles the limit for immediate expensing of equipment to $2.5 million. Backers of the measure, including Republican lawmakers, say the package could spur roughly $284 billion in additional output and support about 7.2 million jobs by bolstering investment on Main Street and in rural manufacturing hubs. At the same time, the administration is defending its 145% tariff on Chinese imports in a federal appeals court, warning that striking down the duty could trigger an economic collapse on the scale of the 1929 Depression and jeopardize programs such as Social Security and Medicare. Economists remain split: some credit the trade stance and tax changes for steady prices and rising real wages, while others caution that prolonged tariffs risk higher consumer costs and supply-chain disruptions.