The latest Association of International Certified Professional Accountants (AICPA) and Chartered Institute of Management Accountants (CIMA) Economic Outlook Survey maintains business executives have lowered profit and revenue growth expectations.
The third-quarter survey included 375 responses from CPAs in leadership positions such as chief financial officer or controller. It was conducted from Aug. 2-22 to examine profit and revenue growth over the next 12 months.
“The degree of pessimism over the economy was unchanged this quarter after bottoming out in the spring,” said Ash Noah, AICPA and CIMA vice president and managing director of Learning, Education, and Development. “It’s concerning, though, that business executives’ views of their own company’s prospects are eroding. Only 41 percent of survey takers expressed optimism about their organization’s outlook this quarter, down from 47 percent. That’s a reflection, at least in part, of the pressure we’re seeing on profit and revenue projections.”
Survey respondents expect zero profit growth over the next 12 months, a decrease from an anticipated rate of 0.7 percent last quarter and 2.5 percent a year ago.
Other survey findings include that 18 percent of business executives have expressed optimism about the nation’s economic outlook over the next 12 months; with regard to hiring, 34 percent of business executives noted their organizations are looking to fill roles immediately; and another 19 percent expressed they had too few employees but are hesitant to hire.