National Federation of Independent Business (NFIB) reported on Tuesday its latest survey revealed that small business optimism improved modestly in March.

According to the report, the NFIB Small Business Optimism Index edged up 0.1 points to 101.8 in March, a historically strong level and an indication that small businesses continue to power the economy after being briefly shaken by January’s government shutdown. 

Economists had forecast the index to come in at 101.3.

Five indicator's components improved, two were unchanged, and three declined. Labor market indicators showed improvement, the outlook for expansion, real sales and reports of rising earnings gained ground, and capital spending plans held steady. Meanwhile, the major soft spot was in inventories with stocks viewed as too large and plans to invest in inventories turning slightly negative - more firms planning reductions than additions. 

“Small business owners continue to create jobs, expand their operations, and are enjoying strong sales,” said NFIB President and CEO Juanita Duggan. “Since Congress resolved the shutdown, uncertainty has declined as small business owners add jobs, increase sales, and invest in their businesses and employees.”