The outlook among small business owners nationwide for sales, profits and hiring has improved from record-low levels one year ago, but they remain skeptical about the economy’s recovery, according to the PNC Economic Outlook survey’s newest findings.

The spring findings of the biannual survey, which began in 2003, also found few have interest in seeking a new loan or line of credit.

Nearly half (47 percent) of business owners expect their sales to increase during the next six months compared to 40 percent in the fall and the record-low 26 percent one year ago.

Meanwhile, almost one-quarter (22 percent) expect to increase the number of full-time employees in the next six months. This compares to 17 percent in the fall and 12 percent one year ago.

"These findings support PNC’s forecast that the U.S. economy’s ongoing ‘half-speed’ recovery will be sustained throughout 2010 and beyond," said Stuart Hoffman, chief economist for The PNC Financial Services Group Inc. "The missing ingredient in the recovery recipe is private sector job growth. We expect it to soon be baked into the mix, which will make the recovery more satisfying."

The survey, which gauges the mood and sentiment of small- and medium-sized businesses, found just under one-quarter (23 percent) are pessimistic about their own company’s prospects during the next six months. This is comparable to the 25 percent last fall and improved from the record-high 36 percent a year ago.

Nearly half (46 percent) of owners said weak sales/demand for service is the most important challenge facing their business today. Taxes were a distant second (13 percent) followed by credit availability (9 percent), health insurance (8 percent) and employee costs (7 percent).