Small businesses were less optimistic in February, as the National Federation of Independent Business' Small Business Optimism Index fell to 91.4 in the month from 94.1 in January.
Readings near 91.4 historically have been associated with recessions and periods of sub-par growth, according to the group.
An increase in hiring plans, reported in January, was lost in February.
"Uncertainty is a major cause of the Index's dip. Lacking any progress in Washington and facing continued unknowns with the healthcare law, the EPA, the minimum wage, tax reform and more, it is no surprise that the Small Business Optimism Index fell, reversing a few months of modest gains," said NFIB chief economist Bill Dunkelberg. "As long as uncertainty remains high, owners will remain cautious when it comes to increasing inventory. Business owners aren't going to bet their money on a future they cannot see clearly."
