Middle market finance chiefs are also thinking positive.

Nearly 70% of chief financial officers are optimistic about the economy’s expansion in 2003, according to Fleet Capital Corp.’s annual Middle Market survey. This is the highest percentage of CFOs expecting economic expansion in the survey’s five-year history, said Fleet.

Just 5% of CFOs expect the economy to contract, the lowest percentage in the survey’s history.

“This is positive news since the manufacturing sector typically leads the economy out of recession,” says Wayne Ayers, chief economist for FleetBoston Financial. “The fundamental groundwork is in place for a strong, sustainable expansion kicking in toward the middle of next year.”

For example, 71% of the survey respondents expect their companies to report higher revenues in 2003. Last year, just 51% of the survey’s participants anticipated revenue growth.

Only 3% expect their revenues to contract, versus the 14% who expected contraction in last year’s survey.

Also, 61% of the participants said the current state of the economy had not caused them to alter their plans for growth or expansion. In fact, 21% said they have actually accelerated their growth plans.

“Clearly the economy is not yet out of the woods, but based on the trend line over the survey’s five-year history, it appears CFOs believe the worst is over,” says James Connolly, Fleet Capital’s president and CEO, in a statement. “They are now seeing opportunities for growth within their own companies.”

How strong is the CFOs’ conviction? One indication: 46% said their financing requirements would increase in the next 12 months. This is the highest percentage of CFOs citing an increase in financing requirements in the survey’s history, said Fleet.

In fact, 40% said credit availability from their current lender has increased in the past 12 months. And 90% said they have been able to find the financing needed to execute their business plans.

Other key findings from the survey: