According to the findings of a new survey by KPMG US manufacturing and service industry executives are now more optimistic about the prospects for the US economy. Both sectors believe that the worst of the crisis has passed for America.

68% of manufacturing executives expressed their belief that business activity will be higher in the next 12 months, up from 57 percent in October.

41% of the same executives say they have plans to employ more in the coming weeks and months. Five months ago that figure was 28%.

In terms of revenue 65% of manufacturers surveyed by KPMG expect revenues to rise in the next year.

"American manufacturing is on the rise because companies are rebalancing, and it is pretty clear demand is picking up nationwide," said Lynne Doughtie, KPMG's National Managing Partner for Advisory Services.

Things are also getting brighter for the U.S. service sector. Sixty-six percent of executives believe business activity will pick up within the next 12 months. However, they're not quite as optimistic on hiring. Only 28 percent of those who responded expect to add jobs in the short term, and that's up ever so slightly from October.