L.A.-area businesses are upbeat on the local and national economy and on their ability to continue hiring next year, according to a survey of 400 businesses in Los Angeles and Orange counties released Thursday by Wells Fargo Economics.

Despite a recent spike in energy prices and a drop in consumer confidence, 54 percent of the Los Angeles County businesses surveyed said they saw current and future economic conditions improving.

In the hot construction industry, 68 percent said they saw economic conditions improving. Even in the manufacturing sector, a majority (56 percent) said they expected conditions to improve.

On the hiring front, 29 percent of the L.A. County firms surveyed said they anticipated improved or much improved conditions for hiring over the next year, while only 12 percent said hiring conditions would worsen in 2006.

“Southern California businesses we’ve surveyed say they believe that current business conditions are robust and the future looks just as good,” survey author and Wells Fargo Senior Economist Scott Anderson said.

But Anderson said the survey did contain several warning signs of possible slower future growth. Businesses surveyed cited high business costs including labor, insurance, health care and energy as major concerns that could hinder future growth. Increased regulations, high housing costs and global competition were well down the list of concerns.