SmallBusinessNewz

U.S. executives continued to express stronger optimism for improved business activity over the next 12 months, compared with their European counterpart who project flat conditions, according to a new survey by KMPG International.

U.S. manufacturing executives continued to show the strongest sentiment among 6,200 respondents worldwide, with 73 percent expecting improved business activity over the next 12 months, compared with 71 percent in February and 65 percent last October.

Meanwhile, among U.S. service industry executives, 65 percent of survey respondents expected higher business activity in the period, compared with 63 percent in February, and 70 percent in October.

"Expectations for greater business activity moved up again among U.S. executives, which is encouraging, but the slight drop in the European Union is likely a sign that market uncertainties continue to moderate global expansion," said Mark A. Goodburn, Vice Chairman and Head of Advisory for KPMG LLP, the U.S. audit, tax and advisory firm. 

"U.S. executives are seeing signs of an increase in business activity, prompting anticipation for stronger revenue flow, profitability and hiring in the coming months.

Goodburn noted that global survey findings are being compared against low-water marks set as the economy reached bottom during 2009.

"There's no question overall U.S. sentiment is in a significantly better position than in February, though positive mood swings one day can turn sour the next, depending on the day's economic news," said Goodburn. "It appears that stimulus funding has helped the economic engine keep running."

He noted that U.S. manufacturing executives expect higher profit, revenue and employment in the coming 12 months, while their service industry counterparts were not as optimistic, though still more positive than February.

"With stronger optimism around capital expenditures and employment, and with many businesses sitting on cash reserves, businesses could spark sustained positive momentum by translating their confidence into greater investment. Until that happens though, this prevailing optimism could keep things idling or achieving small milestones, rather than putting us in the fast lane to strong growth," Goodburn said.