PITTSBURGH -- U.S. business owners are more optimistic about the next six months based on rising expectations for sales, profits and hiring new employees, according to the most recent PNC Economic Outlook survey, commissioned by The PNC Financial Services Group Inc. Nationally, 88% of business owners are optimistic about their business performance, with 21% planning to add full-time employees during the next six months -- a 3% increase from last fall. Within PNC's primary region, meanwhile, the level of optimism is higher, with 91% optimistic about their company's prospects and 28% expecting to expand their work force -- up 5% from fall and 12% higher than a year ago. PNC's primary region is comprised of Delaware, Kentucky, New Jersey, Ohio and Pennsylvania.Rising health care costs, meanwhile, are considered a critical issue that business owners want the U.S. presidential candidates to address in the upcoming election. Owners also are wary of the potential for higher state and local taxes and the possibility of an interest rate hike later in the year."The results of our most recent survey reflect higher optimism among business owners for sales, profits and hiring during the next six months," says James E. Rohr, chairman and chief executive officer of The PNC Financial Services Group. "They believe that the national economy is moving in the right direction but they remain cautious about certain factors, such as the costs of health care and the potential for increases in interest rates and local taxes."The survey results reflect significant differences from one year ago, when business owners were cautiously optimistic about their own prospects and the local economy despite uncertainty over the war in Iraq and the U.S. economy.Key finds of the survey include:Nearly 9 out of 10 business owners nationwide are more optimistic about their business prospects during the next six months. Nationally, 57% expect increased sales compared to 58% in the PNC region. Increased profits generated a simliar response as 53% nationally and 55 % in the region expect gains.While the majority of owners expect no change to their hiring plans during the next six months, their outlook is brighter. Nationally, 21% plan to add full-time employees,3% from last fall. In the PNC region, 28% plan to add staff compared to 23% last fall and 16% a year ago.Most companies that intend to hire are looking for skilled labor (52%) first, followed by unskilled (42%), sales (40%) and professional (32%).The local talent pool is adequate or better for 64% of owners in the PNC region and 68% nationwide. At the same time, 29% nationally and regionally (33%) believe it is below average.Heightened concern over rising health care costs has spread nationally and remains an issue in the PNC region. Compared to October, 55% nationally expect costs to rise (up 12%) while 68% in the region (up 8%) expect a hike.When it comes to prices, more owners expect a price hike for customers. Compared to October, 31% both nationally (up 9%) and regionally (up 6%) foresee an increase in the next six months. At the same time, they expect the same from suppliers. Just over half (52%) of firms nationally and 58% (up 15% since fall) in the PNC region expect higher vendor pricing.Rising health care costs are considered the single most important issue among business owners that U.S. presidential candidates should address in the upcoming election. Another issue was tax cuts or continuing tax breaks to small business.The No. 1 national issue that would most affect business in 2004 is the potential for higher state and local taxes followed by the possibility that interest rates will rise later this year. Third is the cost and availability of health insurance.The PNC Financial Services Group Inc., is one of the nation's largest diversified financial services organizations, providing regional community banking; wholesale banking, including corporate banking, real estate finance and asset-based lending; wealth management; asset management; and global fund services.Visit The PNC Financial Services Group Inc.: www.pnc.com"