Adrian Johnson
TLDR:
CPA business leaders’ optimism about the economy has dropped for the second straight quarter, according to a survey conducted by the AICPA & CIMA. Only about one-fourth of business executives expressed a positive outlook over the next 12 months. Concerns about inflation, employee and benefit costs, revenue and profit expectations, and interest rate cuts were highlighted in the survey.
Key Elements of the Article:
CPA business leaders’ optimism about the economy has dropped for the second straight quarter, with only about one-fourth expressing a positive outlook over the next 12 months.
57% of CPA business leaders are worried about inflation over the next six months, down sharply from 75% last quarter.
Revenue and profit expectations for the next 12 months both fell, with revenue growth now expected to be 1.9% and profit projections falling to 0.2%.
CPA business executives who are optimistic about their own organization’s outlook over the next 12 months fell from 48% to 41%.
44% of survey respondents expect their businesses to expand over the next 12 months, down from 53% last quarter. The percentage of those who foresee a contraction rose seven points to 27%.
69% of CPA business leaders said an anticipated interest rate cut would have at least a moderately favorable impact on their organization.
54% of respondents said the election uncertainty has had limited or no impact on their business forecasting.
Some 13% of business executives said they had too many employees, up two percentage points from last quarter.
The survey was conducted from Aug. 6 to 27, 2024.
