September 01, 2022
CPA executives lowered their expectations for profit and revenue growth over the next 12 months as optimism in the U.S. economy plummeted due to inflation concerns and the repercussions of the Russian war -Ukrainian and an economic slowdown in China, according to the third quarter economic outlook survey. published by the American Institute of CPAs and the Chartered Institute of Management Accountants.
Only 18% expressed optimism about the US economy over the next 12 months – the same level as the second quarter survey and an 11-year low.
The survey ran from August 2-22 and includes responses from 375 CPAs who hold leadership positions such as CFO or controller.
“The degree of pessimism towards the economy was flat this quarter after bottoming out in the spring,” said Ash Noah, vice president and general manager of learning, education and development. for AICPA and CIMA, which together form the Association of International Certified Professional Accountants.
“It’s concerning, however, that business executives’ views on the prospects of their own business are eroding,” Noah said. “Only 41% of respondents expressed optimism about the outlook for their organization this quarter, down from 47% previously. This reflects, at least in part, the pressure we see on earnings and revenue projections. »
- When hiring, 34% of business leaders said their organization is looking to fill positions immediately. Another 19% said they have too few employees, but are reluctant to hire. Five percent said they had too many employees.
- Inflation was the main concern of business leaders for the fourth consecutive quarter. The other two main challenges were identical to the last quarter: “Costs of materials/supplies/equipment” and “Availability of qualified personnel”.
- The percentage of business leaders who said their business planned to grow fell three points to 49%, from 53% quarter over quarter. The number of those who said they expected their businesses to contract rose from 14% to 25%.