Also in line with their upbeat outlook, they are planning solid increases in both hiring and major new capital investments. But more than half remain wary about possible return of weak market demand.

Seventy-nine percent of Trendsetter CEOs count themselves optimistic about the U.S. economy's prospects over the next twelve months -- a strong rebound from 70 percent in the prior quarter.

In addition, 74 percent are optimistic about the outlook for the global economy, the first time in nearly five years that optimists exceeded 70 percent. Nearly half (48 percent) have international revenues, and expect to generate 18.9 percent of their total sales abroad over the next 12 months.

This surging optimism is evidenced in responding companies' latest 12-month revenue growth target: 22.5 percent, up markedly from their estimate of 20.7 percent made in the prior quarter, and 19.6 percent a year ago.

Service businesses continue to expect faster growth than product sector companies -- 24.0 percent, versus 20.5 percent, respectively.

"Following a period of increased uncertainty leading up to the national elections, these companies with extraordinary potential have taken a considerably brighter view of the economy and their own business prospects," said Paul Weaver, PricewaterhouseCoopers' global technology industry leader.

In 2004, 75 percent of surveyed companies increased the size of their workforce, only10 percent reduced it, and 15 percent made no change. The average workforce grew, in net, by 13.7 percent. Looking ahead, hiring plans remain robust. Eighty percent are planning net job additions in 2005, and overall, an average workforce increase of 10.3 percent is expected.

New hiring plans are closely related to projected revenue growth. The 80 percent expecting to expand their workforce are forecasting 25.7 percent revenue growth, while those planning no additions foresee growth of only 9.6 percent.

Service and technology businesses are planning comparatively more net hiring. Eighty-seven percent of service companies expect to add an average of 12.8 percent net new hires, while 83 percent of technology companies plan an average net increase of 12.3 percent.

In contrast, product sector businesses expect an average 5.4 percent increase in net hiring, and non-tech businesses anticipate a 7.6 percent net increase.

In addition, over the next 12 months, 48 percent of Trendsetter CEOs are planning major new investments in their business, up from 44 percent in the preceding quarter, and 41 percent a year ago. Average spending expected in 2005 is 11.5 percent of revenues, with budgeting closely related to targeted revenue growth. Those planning major new investments expect a 27.2 percent revenue increase over the next 12 months, compared to 18.2 percent for those without investment plans.

The two leading expected investments are information technology and new product development, planned by 45 percent and 41 percent, respectively.

"The surveyed companies appear to be in, or approaching productivity's sweet spot, where the existing workforce is operating at its fullest and best capacity," said Weaver. "Planned new jobs and investments reflect an expectation of continued growth, and could also lend a welcome boost to the economy."

Weakening market demand continues to be seen as the leading potential barrier to growth over the next 12 months, cited by more than half (54 percent) of Trendsetter CEOs. Given their surge in planned hiring, lack of skilled, trained workers has become their second-greatest concern, noted by 36 percent. Profitability rounds out the top three management worries, mentioned by 30 percent.

"Stung by the recession, these CEOs will not quickly abandon concern about a possible slackening of market demand," said Weaver. "Going forward, we can also expect that more of these leaders will see pressure for increased wages as a barrier, in light of their substantial hiring plans. And, concern about lack of capital for investment is likely to increase as interest rates continue to climb."

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