Currently mired in the woes of the worst economic recession in decades, technology executives are nevertheless confident that the technology industry will lead the economy out of the economic doldrums.

That was just one finding gleaned from a KPMG survey of top executives in the hardware and software businesses. The executives said they expect improved revenue and profitability in 2010 and half of them are predicting a brighter job picture then, too. About 39% of the respondents believe the economy will recover by next year while 43% said they expect the U.S. economy to recover after 2010.

"The results are in line with recent earnings reports in the technology sector which suggest business conditions are starting to improve," said KPMG's Gary Matuszak in a statement Wednesday. "There are also reports of software industry sales expanding five to ten percent after the recession." Matuszak is partner, global chair and U.S. leader for KPMG's Information, Communications & Entertainment practice.

Executives in Silicon Valley were particularly optimistic -- 77% believe the technology sector will outpace the U.S. recovery, according to KPMG.

Another hopeful sign cited was that nearly 70% of the responding executives said they are emphasizing long-term growth while just 31% said they are emphasizing cost cutting measures.

Their future vision is in sharp contrast with the executives' current ways of coping with the recession: 68% said they reduced headcount.

Some 60% of the respondents said also that they had been cutting capital expenses and, in an indication that the cost cutting may be running its course, just 28% said they were considering cutting expenses in the future.

Another theme expressed by the executives focused on the role improved confidence could have on the economic recovery. A total of 42% of the respondents cited improved business confidence as a potential important trigger for reviving the economy while 41% said that improved consumer confidence was important.