Business executives are feeling worse about their 12-month outlook for the U.S. economy than they were earlier this year, according to a new survey from the American Institute of Certified Public Accountants (AICPA). The organization’s second-quarter Economic Outlook survey, released June 7, polled chief executive officers, chief financial officers, controllers and other certified public accountants […]
Business executives are feeling worse about their 12-month outlook for the U.S. economy than they were earlier this year, according to a new survey from the American Institute of Certified Public Accountants (AICPA).
The organization’s second-quarter Economic Outlook survey, released June 7, polled chief executive officers, chief financial officers, controllers and other certified public accountants in executive and senior management accounting roles. Most see better prospects for their own companies over the economy as a whole, according to AICPA.
However, the poll also found concerns about hiring have intensified since the start of the year.
”What we’re seeing is the same ‘two steps forward, one step back’ cycle we encountered last year,” Arleen Thomas, AICPA senior vice president for management accounting, said in a news release. “There’s no question survey takers have grown more pessimistic about the U.S. economy and with expectations muted for profit, revenue, and employment growth, there appear to be few catalysts to change that view.”
The survey’s outlook index, a gauge of overall executive sentiment, fell two points to 67 after two quarters of improvement. Numbers above 50 signal positive sentiment among executives.
Optimism about the national economy fell 9 percent in the second quarter with 34 percent of respondents saying they were optimistic or very optimistic about conditions in the U.S. But, 54 percent felt good about the prospects for their own organizations while 13 percent expressed pessimism.
Most respondents said their companies have the right number of employees, but 10 percent said their have too many workers, up from 7 percent in the previous quarter. The number who said they plan to hire soon dropped from 14 percent to 12 percent.
Top challenges listed by respondents were domestic economic conditions, regulatory challenges, and employee and benefit costs. Those three issues have topped the list of challenges among respondents for the past three quarters, according to AICPA.
The survey included 1,250 responses from accountants holding leadership positions in their companies.