Outlook on U.S. financial system stays at 11-year low, AICPA survey says

U.S. enterprise executives’ expectations for revenue and income development plummeted once more for subsequent yr, based on the third-quarter AICPA and CIMA Financial Outlook Survey. 

The survey polls CEOs, CFOS, controllers and different CPAs in U.S. firms who maintain govt and senior administration accounting roles. This adverse outlook on the U.S. financial system is rooted in issues in regards to the penalties of inflation, the Russo-Ukrainian warfare and the financial slowdown in China. General, solely 18% of enterprise executives have been optimistic in regards to the subsequent 12 months.  

“It is regarding that enterprise executives’ views of their very own firm’s prospects are eroding,” stated Ash Noah, vice chairman and managing director of studying, schooling and improvement for AICPA and CIMA, in a press release. “Solely 41% expressed optimism about their group’s outlook this quarter, down from 47%. That is a mirrored image of the stress we’re seeing on revenue and income projections.” 

Dusanka Visnjican/Cherries – Fotolia

AICPA and CIMA, which collectively kind the Affiliation of Worldwide Licensed Skilled Accountants, discovered this share was the identical as final quarter, when it hit an 11-year low ratio. Since 2021, survey respondents’ views on the financial system have declined every quarter, and the speed of constructive outlook for the worldwide financial system during the last 12 months fell to 9% for U.S. executives. 

Survey respondents now anticipate zero revenue development this yr, and income projections additionally plummeted quarter over quarter, from an anticipated 3.4% development charge to 2.6%. That is the bottom these key efficiency indicators have been at since 2020. 

“We’re nonetheless seeing residual stresses on provide chains from the pandemic and that is now been coupled with the affect of sanctions and enterprise wind-downs involving Russia,” stated AICPA govt vice chairman of enterprise engagement and development Tom Hood in a press release final quarter. “These international dislocations, a risky pricing and price surroundings, and the persevering with affect of office shifts such because the Nice Resignation are placing numerous stress on companies and their finance groups.”

On hiring, 34% of enterprise executives stated they have been on the lookout for new candidates, whereas 19% stated they have been hesitant to rent, regardless of a reported employees scarcity. The survey additionally discovered that fewer companies have been planning to increase, however the variety of firms anticipating to contract rose from 14% to 25% since final quarter.

For the fourth quarter in a row, inflation imposed itself as the highest concern of enterprise executives, whereas different high two challenges remained the identical as final quarter: “supplies/provides/gear prices” and “availability of expert personnel.” Notably, the highest 10 gained a brand new class of challenges, the primary in a while, with “stagnant/declining markets.”