The National Federation of Independent Business (NFIB) reported on Tuesday the Small Business Optimism Index increased by 1.4 points to 104.7 in July, recovering after a 1.7-point drop posted in June.

The July increase in the headline index was attributable to an improvement in expectations for business conditions, real sales, and expansion.

According to the report, seven of 10 index components advanced, two declined, and one was unchanged. It also revealed that small business owners’ plans to create new jobs and make capital outlays increased and earnings trends improved, helped by a solid improvement in sales trends. In addition, plans to order new inventories posted a solid gain.

“While many are talking about a slowing economy and possible signs of a recession, the 3rd largest economy in the world continues to defy expectations, generating output, creating value, and expanding the economy,” noted NFIB President and CEO Juanita D. Duggan. “Small business owners want to grow their operations, and the only thing stopping them is finding qualified workers.”