Fund group Fidelity surveyed 128 of its analysts based in Europe and Asia. They reported that company management teams are “now no longer worried the world will end” and bosses have started to spend some of the cash sitting on balance sheets with the focus on shareholder-friendly activity, M&A and increases in dividend payments.

The analysts said a higher proportion of companies are confident about the year ahead compared to last year, reflecting the strength of the recovery, a return to “normal” conditions and early signs of “animal spirits” after a period of protracted uncertainty and management caution.

In terms of geographies, the US was widely regarded as the standout economy for 2014 among analysts. It came out strongest in terms of business confidence, capex outlook, dividend growth potential and balance sheet health. The sectors that polled more positively across the board were the knowledge economy sectors of pharmaceuticals, technology and financials, as well as consumer.

Meanwhile, increased dividend payouts and M&A were among the strongest themes to emerge for 2014. Analysts reported that a large majority of their companies are likely to maintain or increase dividends, while 85 per cent believed M&A will be a priority looking ahead.

Henk-Jan Rikkerink, head of equity research, Europe & US at Fidelity Worldwide Investment said: “This year’s survey suggests company management teams are more prepared to put capital to work after a period of protracted caution. As a result, we are moving into a more discriminating environment in which stock-specific drivers are likely to explain a larger part of investment returns.”