U.S. business leaders are the most optimistic they have been since before the recession, according to Grant Thornton LLP’s most recent Business Optimism Index, a quarterly survey of U.S. business leaders.

Nearly two-thirds (64%) believe the U.S. economy will improve in the next six months, compared with 47% in November. Half of the business leaders (49%) report that their company plans to increase staff in the next six months (up from 43%), while only 10% plan to decrease staff (down from 15%) The Index itself is up 6.7 points to 69.7, the highest it has been since 2004.

Nearly nine in 10 of the business leaders (87%) are also optimistic about their own businesses, with only 13% reporting that they are pessimistic about their companies’ growth over the next six months.

With regard to the reducing the U.S. government budget deficit, business leaders favor cutting spending 3 to 1 over raising taxes.