"Positive signs in the U.S. economy, coupled with a reduction in uncertainty are laying the foundation for more robust deal activity as the year progresses," according to PwC.
A better job market is helping boost confidence in the economy. On Thursday, the U.S. Department of Labor reported that the number of people applying for unemployment benefits declined by 4,000 last week to a seasonally adjusted, five-year low of 323,000.
Though there were signs in the first quarter that the economy was improving, a pall of uncertainty hung over markets, PwC noted. The government's so-called sequestration of funds, arising out of a budget-slashing political compromise, resuscitated fears of another U.S. recession. Concerns about the ongoing recession in some European countries were compounded by the failure of bank in Cyprus, a tax haven for investors from third-party countries.
Concerns subsided somewhat as the European Central Bank worked out a compromise deal on Cyprus that hit mainly the richest investors, and for tech companies, "Sequestration, rather than a "catastrophe," may ultimately turn in their favor as technology businesses provide government organizations innovative tools to reduce costs and drive efficiencies," PwC said.