A gauge of small business optimism edged up in February, reflecting stronger hiring plans, the National Federation of Independent Business said on Tuesday.

"For the first time in three years, owners reported solid job creation, and plans to create more new jobs improved again (although historically still weak)," the federation said.

It said its Index of Small Business Optimism gained 0.4 points to 94.5 and February. While positive, it was "not the hoped-for surge that would signal a shift into ‘second gear’ for economic growth," the federation concluded from a survey of 2,144 respondents.

The federation said that over the next three months, 17 percent of respondents said they would increase employment and 6 percent said they plan to reduce their workforce. (Reuters)