The Siena Research Institute at Siena College in New York conducted its third annual Survey of Pennsylvania Business Leaders, receiving responses from 865 leaders of businesses with $5 million to $200 million in annual sales.

The majority of those surveyed, 76 percent, think the state's business conditions have either improved or at least stayed the same over the past six months, the report stated.

Thirty-two percent of respondents felt economic conditions have improved for their specific industry, according to the report. However, 30 percent said conditions have worsened for their industry. Fewer business leaders surveyed thought the overall state economic conditions have worsened, at 24 percent, the report found.

"For about three out of every four CEO's, the worst is certainly over but the recovery is slow in arriving," the report stated, results that are similar to the institute's 2011 survey.

More than 80 percent of those surveyed expected economic conditions to be the same or better than in 2011, according to the report. Yet nearly 20 percent of respondents expected conditions to worsen, a number that increased from 17 percent last year, the report stated.

Forty to 47 percent of Pennsylvania industry executives in retail, service, financial and food and beverage expected the economy to improve, while 32 to 37 percent of those in manufacturing, wholesale distribution and engineering and construction expected to see improvement, according to the report. The outlook was lowest in the engineering and construction sector, where 28 percent of respondents expected their industry conditions to worsen, according to the report.

"Overall, despite a shrinking plurality of CEO's anticipating improving economic impacts on their industry, CEO's in Pennsylvania remain guardedly optimistic," the report stated.

Forty-six percent of business executives anticipated a growth in revenue, while 20 percent expected revenue to decline, according to the report.

The report found an increase in businesses planning to acquire fixed assets, up to 46 percent from 43 percent last year. Companies planning to moderately increase workforces also increased to 28 percent from 23 percent last year, according to the report. Nine percent of respondents planned to decrease their workforce in 2012, the report stated.

"They are telling us that they are open for business in Pennsylvania," said Todd Moules, Western Pennsylvania regional president of First Niagara Financial Group Inc., parent company of Buffalo, N.Y.-based First Niagara Bank, which underwrites the survey.

The institute conducted the survey from November through January, with participants responding to a survey via telephone conversations, mail or online. The survey included the metropolitan statistical areas of Allentown, Altoona, Erie, Harrisburg, Lancaster, Pittsburgh, Philadelphia, Reading, Scranton and York. The margin of error was plus or minus 3.3 points.