U.S. companies’ employment outlook improved to a 12-year high this quarter after sales strengthened and economic growth picked up, a survey showed.

The National Association for Business Economics who carried out the survey said that the number of companies expecting to increase staff numbers in the next six months exceeded the share projecting more firings by 35 points, the most since the survey began in 1998. 62% of respondents planned to boost spending on new equipment this year, up from 48% in the October survey.

This has fuelled hopes that the US economy will finally start to shrug off the high levels of unemployment which have so far given us a jobless recovery.

Lower levels of unemployment should make consumers feel more secure in their jobs and allow them to spend more.