The AICPA & CIMA Economic Outlook Survey for the second quarter of 2022 reveals that business executives are optimistic about the US economy, but this optimism has decreased compared to the previous quarter. The survey, which polls CEOs, CFOs, controllers, and other CPAs in executive and senior management accounting roles, showed that while 35% of respondents expressed optimism about the economy’s prospects over the next 12 months, down from 43% last quarter. Despite this decrease in sentiment, the overall trend over the past year has been positive.
Tom Hood, executive vice president for business engagement and growth at AICPA & CIMA, noted conflicting signals in the survey results. Inflation concerns remain consistent with a year ago but have seen a dip and then a steady rise over the past year. Revenue and profit expectations have been increasing in recent quarters, indicating underlying strength in the economy. However, these indicators have led to ongoing sideways movement due to conflicting statistics.
Uncertainty has been further heightened by it being an election year. While the top three concerns for business executives – inflation, employee and benefit costs, and availability of skilled personnel – remain unchanged from the previous quarter; “domestic political leadership” has moved up three spots to No. 4 on their list of concerns.
The hiring outlook remains strong but shows signs of softening. Some 29% of business executives reported having too few employees with 16% looking to hire immediately and 13% hesitant to recruit due to uncertainty. This marks a shift from last quarter when 37% of respondents reported having too few employees and 22% were looking to hire immediately.
