The NFIB Small Business Optimism Index fell 0.6 points in March to 104.7, the second straight month of declining optimism, according to the NFIB Small Business Economic Trends Report.

Actual earnings, capital expenditure plans and job-creation plans posted gains in March. Sales expectations, which have been high for months, dropped by 8 points, a sign that the Optimism Index could be moderating after a strong run.

“Small business owners remain optimistic about the future of the economy and the direction of consumer confidence,” said NFIB President and CEO Juanita Duggan. “We are encouraged by signs that optimism is translating into economic activity, such as capital investment and job creation.”

Bill Dunkelberg, NFIB's chief economist, said that while the overall index remained strong in March, a significant increase in the Uncertainty Index, a subset of data on how small-business owners see the near-term future, could indicate trouble on the horizon.

“The Uncertainty Index hit 93 in March, which is the second highest reading in the survey’s history,” he said. “More small-business owners are having a difficult time anticipating the factors that affect their businesses, especially government policy.”