Another sign the economy is on the upswing: More CIOs are planning to increase IT spending than at any time since mid-2008, according to an exclusive CIO survey.

Nearly four out of ten CIOs (37 percent) now plan IT spending increases in the coming year, the most since July 2008, when 49 percent saw their technology budgets rising. By May 2009, only 14 percent anticipated higher spending.

Now, the data suggests a turnaround. The online survey of 257 IT leaders during late August and early September found that they plan to spend more across all technology categories. Applications (43 percent), Web and mobile technology (37 percent) and network infrastructure (35 percent) were most frequently cited as areas for new investment. Forty percent of respondents said they would allocate more money to new projects in the coming year. That's up from 25 percent in January, the first time respondents were asked about their new project plans. IT capital spending is on the upswing for 41 percent of the IT executives surveyed, while 35 percent plan to increase spending on discretionary IT projects.

More small companies than large ones are opening their wallets: Forty-three percent of companies with revenues less than $100 million anticipate spending increases, compared to 35 percent of mid-market companies (those with revenues between $100 million and $1 billion) and 29 percent of large companies (those with revenues of $1 billion or more).

The prospect for IT jobs appears to be brightening as well, with fewer CIOs planning staffing cuts than were in January. Roughly one-third plan to increase IT salaries and headcount in the coming year, while 35 percent expect to increase IT training budgets. Meanwhile, fewer CIOs are planning decreases to full-time, in-house staff, domestic and offshore outsourcers, other contractors and temporary staff.

Carolyn Johnson is research manager for CIO. For access to the complete report, go to the online version of this story.