Companies are growing more upbeat about the U.S. economy thisyear and plan to take on more workers as demand improves, a surveyshowed.

Some 78 percent of businesses, the most in a year, project theworld's largest economy will expand more than 2 percent in 2012,according to the National Association for Business Economics' Aprilsurvey released today in Washington. The share is up from 65percent in the group's January report.

About four in 10 firms, the most since July 2011, said theyexpect employment to pick up in the next six months, showingbusinesses are looking beyond higher oil prices and Europe's debtcrisis. At the same time, 66 percent said they expect no change inprices in the next three months, indicating Federal Reserve policymakers will have room to keep interest rates low to nurture thealmost three-year-old expansion.

The survey shows “an improvement in economic conditions,” saidNayantara Hensel, chairwoman of the NABE outlook survey committeeand professor of Industry and Business at the National DefenseUniversity in Washington. “Panelists are not significantlyconcerned about the potential impact of higher oil prices or theEuropean crisis on their business.”

The April survey showed that 60 percent of the businesses, themost in a year, said their sales were rising. In January, 41percent said demand was climbing. Some 83 percent of manufacturerssurveyed said sales were increasing, indicating the industry isstill powering the economy.

Thirty-nine percent of all companies surveyedfrom March 20 to April 10 projected job gains in the next sixmonths. Eleven percent said employment will drop because ofattrition, which suggests the labor market outlook may be moreoptimistic since such declines often occur when an employee isconfident about finding another job, the report said.

Profit margins are also improving at more companies, with 40percent, the most in a year, saying earnings were increasing. Inthe January survey, 30 percent reported rising margins.

Companies indicated in the latest survey that materials costsmay be less of a concern. Some 37 percent said input prices wererising. While up from 31 percent in January, the share is less thanthe 69 percent who said in July that materials were getting moreexpensive.

Cheaper costs may help explain why 66 percent expect no changein their prices in the next three months. Six percent, twice asmany as in January, said they will fall 5 percent or less.

Fifty-five NABE members responded to the survey, which has beenconducted quarterly since 1982. The National Association forBusiness Economics, founded in 1959, is the professionalorganization for people who use economics in their work.

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