The results of the spring survey point to more optimism among firms than in the winter survey, as some of the uncertainty dampening the economic outlook has dissipated. The view that sales growth will be higher over the next 12 months is considerably more widespread,as reflected in a sharp rise in the balance of opinion on future sales. Intentions to increase investment and employment remain firmly positive. Many businesses report that their investment spending continues to be focused on reducing costs or raising productivity. Capacity pressures have eased modestly. The balance of opinion on input prices is just slightly positive, and firms expect output prices to increase at about the same rate as over the past 12 months. Inflation expectations remain concentrated within the Bank’s inflation-control range, but have moved up in line with higher oil prices. On balance, firms reported an easing in credit conditions over the past three months. The balance of opinion on input prices is slightly positive,although not notably above its level in the previous survey. Firms expecting input prices to increase at a greater rate over the next 12 months often cited higher prices for oil or related products as the main reason for this view. Competition among suppliers was among the factors expected to moderate increases in input prices. Overall, a large majority of firms reported that they expect input prices to increase at about the same rate as over the past 12 months.