Small business optimism in the United States receded in March, the National Federation of Independent Business (NFIB) said in a report on Tuesday.

The optimism index declined by 3.3 points in March to land at 97.4, falling below the 51-year average of 98. The figure also came below market expectations. Meanwhile, the Uncertainty Index decreased eight points from February's second-highest recorded reading to arrive at 96.

The net percentage of owners expecting better conditions dropped 16 points to 21%, the steepest fall since December 2020. Tax concerns rose to 18%, the highest since late 2021, just behind labor quality at 19%. Sales expectations fell 11 points to 3%, while price hikes eased slightly to a net 26%. Yet, 30% still plan price hikes in March, marking a one-year high.