Economic confidence declined among accountants and finance professionals in the United States and North America in the second quarter of this year, despite rising global confidence, according to a quarterly survey released by the Institute of Certified Public Accountants and the Institute of Management Accountants on Wednesday. He reported that his sense of well-being decreased rapidly. It seemed to be increasing.
According to ACCA and IMA’s quarterly Global Economic Situation Survey, confidence in North America is currently well below historical averages, but in the United States the decline was even more pronounced in the second quarter of this year.
Meanwhile, confidence among global accountants and financial professionals improved again in the second quarter of 2024, despite a significant drop in North America. Global confidence among accountants and financial professionals rose slightly in Q2 2024, slightly above the historical average. For CFOs, all major global indicators rose, with notable increases in new orders and capital expenditures.
Trust among accountants is significantly higher than historical averages in Asia Pacific, slightly above average in the Middle East and Western Europe, slightly above average in South Asia, and slightly above average in Africa. It’s below. The proportion of global respondents reporting “increased costs” decreased in the second quarter, but remains elevated by historical standards. Cost pressures remain high in all regions except the Middle East.
Alan Mulder, senior director of European operations and global special projects at IMA, said: “The US economy has slowed from its dizzying pace of expansion in the second half of 2023, and the latest results raise the risk of further slowdown over the coming quarters. ” he said. , in a statement. “The probability that the US Federal Reserve will begin monetary easing after the summer is increasing, but inflation trends in the coming months will be important.”
This was backed up by Chairman Jerome Powell’s statement at the Federal Reserve Board meeting on Wednesday that, although interest rates were left unchanged for now, “a rate cut may be considered” at the next meeting in September. Ta.
“GECS suggests further improvement in the global economy in the second quarter,” Jonathan Ashworth, chief economist at ACCA, said in a statement. “While the decline in the North American and US indices warrants caution, signs of further improvement in the key Western Europe and Asia-Pacific regions are encouraging.”
There were other notable regional differences as well. Accountants based in Western Europe reported another significant boost in confidence as the eurozone and UK economies continued to recover. The Asia-Pacific region also experienced a modest increase following previous strong gains, with the New Orders Index rising significantly. The region is benefiting from improvements in the global economy, including rising manufacturing and technology cycles.
The quarterly survey asks accountants to rank their top three risk priorities. For the first time in a year, the economy is no longer the top concern for respondents working in financial services, although it is near an all-time high. In the corporate sector. Q2 survey responses also revealed that organizations are increasingly struggling to rank cybersecurity as the third-highest risk priority across all sectors combined.
