Sixty-three percent of CFOs said that their companies have recently increased or plan to raise wages, and 26 percent said it was because they were having trouble luring or retaining skilled employees.

An improved outlook on business balance sheets and the economy may be the impetus firms need to raise wages. The finance heads’ gauge of optimism about the U.S. economy rose to 64.7 in three months to March from 63.7 in December. The group’s index of corporate sentiment climbed to 67.5 from 66.4.

One potential headwind for companies is the appreciation of the U.S. dollar, helping explain why CFOs project slower growth in capital investment, earnings and technology spending. One in four U.S. companies with at least a quarter of their sales in overseas markets have trimmed business spending in response to the greenback’s strength.

“We are in a midst of an ugly contest to see whether the eurozone, Japan or Canada can depreciate the most against the U.S. dollar, and China is probably next,” Campbell R. Harvey, a Duke professor and founding director of the survey, said in a statement. “U.S. exporters are being punished by these competitive depreciations and this will lead to lower profits and less employment.”

Copyright 2018 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.