Ernst & Young on Monday released its eighth US Capital Confidence Barometer, a survey of senior executives that gauges corporate confidence in the economic outlook. Here are their key findings:

44% think the global economy is improving, up from 24% six months ago.

61% of companies are focused on growth, up from 46% in October 2012.

58% view global credit availability as improving.

76% expect global M&A volumes to improve; 29% expect to do a deal in the next 12 months.

45% expect valuations to rise in the next 12 months.

While most expect deal volume generally to improve, nobody wants to be first to move. The past few years have not been forgotten, and a mentality of risk aversion is still at the forefront. However, “first-mover advantage is a constant, even in today’s markets.”

Improved access to credit and market growth seem to actually be placing downward pressure on deal activity; instead of using this as an opportunity to buy or sell, companies are using this time to pursue a conservative policy of organic growth. Some companies have utilized cheap credit to issue dividends or buy back stock, while others have considered going public. There is a mindset of not wanting to sell too cheaply as market values rise, or to purchase too dearly. This spread has led many buyers and sellers to talk about deals, only to have them “die in the marketplace“.

Still, PE firms and companies have reported an improvement in the number and quality of deals seen.

The report by Bain & Co. provided yesterday explains a large amount of exit overhang, concentrated primarily in buyout vintages of 2005 and 2008, accounting for three quarters of unrealized capital. This overhang has led to LP funds being tied up for ever-increasing time periods.

“With exit pressures reaching critical mass, prospects for a break in the logjam this year look better than they have for a long time. The outlook is by no means uniformly bright and there are many stubborn problems that will not be solved anytime soon. But from strategic sales, to sponsor-to-sponsor deals, to IPOs, there are enough new sources of strength coalescing to push exit activity to a significantly higher level over the next 12 months—although perhaps not of sufficient strength to meet LPs’ liquidity needs.”

While the path forward seems uncertain, it appears that activity is going to pick up in the next couple of months. As buyers and sellers gain confidence, as deals start to pick up and as pressure on GP’s to free up funds increases, the pace of deal activity should accelerate.