Small-business owner confidence edged higher in September, but only because negative subindexes were less bad last month, according to data released Tuesday.

The National Federation of Independent Business's small-business optimism index increased to 88.9 in September, from 88.1 in August. The September advance was the first increase following six-consecutive declines.

Even with the gain, the NFIB said the index remains a "solid recession reading."

"It's just ugly," the report said. "Nothing has transpired to rally confidence that the recovery will pick up speed."

Expectations for real sales growth and business conditions improved, but remain negative.

The subindex of expected business conditions in the next six months rose 4 percentage points to -22%, and the expected higher real sales index increased 6 points to -6%.

The overall pessimism translated to a weaker readings on sales and employment. The earnings trend subindex slipped 1 point to -27% last month. The new-jobs index fell 1 point to 4%.

The NFIB points to consumer sentiment surveys that show U.S. households--the main customers for small businesses--are similarly pessimistic about the economy.

"The key to recovery is restoring the confidence of consumers," the report said. That's because an increase in household spending would boost sales across the economy.

Pricing power among small businesses picked up slightly in September. The NFIB said on a seasonally adjusted basis, the net percentage of business owners raising selling prices was 6%, up 5 points from August.

-By Kathleen Madigan, Dow Jones Newswires; 212-416-2466; kathleen.madigan@dowjones.com

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