The American Institute of Certified Public Accountants (AICPA) Economic Outlook Survey references business executives’ optimism about the economy continues to soar but is tempered by growing inflation concerns.
AICPA officials said the survey polled chief executive officers, chief financial officers, controllers and other certified public accountants in companies who hold executive and senior management accounting roles.
The results determined 79 percent of business executives said they were upbeat about prospects for the economy, which surpassed last quarter’s post-Great Recession high of 74 percent. Optimism levels were as low as 28 percent in early 2016.
“Business executives are drawing a lot of confidence from current economic indicators and cite federal tax reform and deregulation as two factors in their improved outlook over the next year,” said Arleen R. Thomas, managing director of Americas Market, Global Offerings & CGMA Exam, Management Accounting for the Association of International Certified Professional Accountants. “At the same time, we’re seeing an uptick in concerns often associated with a hot economy, from talent pool issues to rising inflation fears.”
With regard to inflation, 49 percent of business executives said they view it as more of a risk than deflation over the next six months.
Their response is up from 27 percent last quarter, officials said, and in the previous five years, it had never exceeded 38 percent. The main inflationary risk factors cited are, in order, labor costs, raw material costs and interest rate hikes.