NEW YORK (CNN/Money) - The latest reading on executives' business outlook finds many expecting to add staff and increase capital spending in the next year.

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A survey of 101 Chicago-area senior executives by accounting firm KPMG found nearly three-quarters said their companies were performing better than 12 months ago, and about the same percentage predicted their companies would be performing better a year from now.

The survey said 40 percent expected to increase hiring, with only 7 percent expecting to cut staff. In addition, 48 percent said they expected to increase spending on capital improvements and technology, and 39 percent expected to increase the number of markets their companies serve.

"The combination of a greater level of confidence as expressed by the Chicago area executives we consulted, and stronger economic indicators overall, demonstrate that the recovery is well on its way," said KPMG Chairman and CEO Gene O'Kelly. "These positive developments may also reflect a wider move toward greater confidence in the capital markets."