Small-business owners’ outlook brightened in July after dimming in June.

The National Federation of Independent Business Optimism rose 1.4 points to 104.7, the business group said. Economists had forecast it to remain at the June’s level or slightly decline.

“This is a confirmation that small business owners remain very optimistic about the economy despite all the talk about ‘slowing,'” the NFIB said in its report Tuesday. “Expectations for business conditions, real sales, and expansion posted solid gains.”

Expectations for better business conditions increased as did those reporting the current period as a good time to expand. The share of small business owners expecting higher sales rose. Plans to hire also improved but a record-high share of business owners complained it is difficult to hire workers.