Growth projections remain strong among executives surveyed for PwC US’s Private Company Trendsetter Barometer: 78% expect positive growth over the next 12 months, with 35% projecting double-digit growth and 43% forecasting single-digit growth. The rate of expected growth for Trendsetter companies overall has risen 18%.

Forty-five percent of Trendsetter executives say they remain uncertain about US economic prospects, while 39% voice optimism, up 12 points from last quarter, though still well below the 63% voicing optimism a year ago. The percentage expressing outright pessimism dropped to 16%, down eight points. Private companies' view of the world economy is comparatively dimmer, with nearly as many Trendsetter executives expressing optimism (24%) as pessimism (22%). Over half (54%) of private companies that sell abroad say they are uncertain about global economic prospects.

Forty percent of Trendsetter companies cite information technology as their top area of planned operational spending, followed by new products/services (29%), marketing and sales promotion (25%), business acquisitions (16%), and R&D (14%). Planned IT spending is higher among Trendsetter companies selling in international markets (48%) than among domestic-only companies (34%).

Limited Bank-Loan Activity

Banking activity for private companies remains limited, with only 7% reporting new financing. Just 6% are reporting new bank loans, with more loans being made to product firms (8%) than to service firms (2%). Concern about lack of capital as a barrier is down 8 points, at 18%, but is notably higher among small private businesses than large ones (22% versus 13%).

To read the full PwC press release, click here.