Small businesses remained cautious about adding to payrolls in October, with fewer hiring than was the case a month earlier, a survey by the National Federation of Independent Business showed.

The NFIB monthly survey issued on Thursday showed that 10 percent of member firms increased average employment by 4.5 employees in October, down from 13 percent in September.

Over the next three months, 13 percent said they would reduce employment and only eight percent said they would create new jobs.

"Although expectations for business conditions and real sales trends improved in October, it wasn't enough to produce a surge in job creation plans which remained mired at recession levels," the federation said.