A revival in optimism about the global economy to its highest for three years has eroded fund investors' suspicion of commodities, a survey of fund managers has revealed.

A majority of fund managers are still treating commodities with caution, this month's Merrill Lynch survey of fund managers found.

However, the balance of fund managers going light in commodities, compared with those taking overweight positions, has fallen to 6% from 15% last month and 34% in December.

"Commodities continued to find favour," Merrill Lynch said.

The reassessment, despite a 4.4% fall in commodity prices over the last month, reflected an improvement in hopes for global economic growth.

"For the first time in more than three years, investors do not predict lower global economic growth over the next 12 months," Merrill Lynch said, adding that sentiment had strengthened in particular for China.

"Commodities continued to benefit from rising China growth expectations," the survey said.

The revival in commodities was also reflected in an improvement in sentiment towards shares in the basic resources sector. Again, while most fund managers were still taking underweight positions, their majority halved to less than 10%.

Gary Baker, Banc of America Securities-Merrill Lynch co-head of international investment strategy, said: "March's survey shows signs that investors want to believe in an economic recovery."