Almost a third of Welsh small and medium sized businesses plan to boost spending in the next year.
A Federation of Small Businesses (FSB) survey for the third quarter of 2014 shows 28% of firms plan to increase capital investment - money spent on assets such as land and machinery.
This is a sharp rise from 10% in the previous quarter.
FSB Wales policy unit chairwoman Janet Jones said: "This is a positive sign for the Welsh economy."
Also, 5% of businesses questioned said they had recruited staff in the past three months and 15% said they had seen a rise in profits during the quarter.
However, Welsh businesses are less positive about the short-term future.
Just 23% said they are optimistic about the coming three months, compared to the UK-wide figure of 41%.
FSB Wales Policy Advisor Josh Miles said: "That is hardly surprising given the difficult times that so many business owners in Wales have faced in the wake of the economic crisis."