CONFIDENCE among US small businesses rose in February for a third month as more company leaders said they will invest in equipment and stockpiles.

The National Federation of Independent Business's optimism index improved 1.9 points to 90.8 last month from 88.9 in January. Eight of the measure's 10 components rose, the Washington-based group said yesterday.

The report also showed respondents remained pessimistic about the outlook for economic growth and earnings, a sign the gains in capital spending and inventories will be slow to develop.