CPA Survey Indicates Optimism Among Executives
NEW YORK -- Business executives appear to be more optimistic about the U.S. economy, with modest growth in recruitment, staff training and targeted capital investment anticipated over the next 12 months, a newly released survey shows.
That optimism is reflected in the American Institute of Certified Public Accountants’ first quarter economic outlook survey, which was conducted Feb. 11-26 and included 867 qualified responses from CPAs who hold leadership positions, such as chief financial officer or controller, at their companies.
The biggest gainer among index components was U.S. economic optimism, typically the most volatile category from quarter to quarter. Some 49% of survey takers now say they are optimistic or very optimistic about the economy, compared to 38% last quarter. The first quarter’s tally matches the post-recession high set in the second quarter last year. Respondents are feeling even better about prospects for their own company or organization, although the rate of increase quarter over quarter is narrower (59% said they are optimistic versus 57% last quarter).
On hiring, a majority of respondents, 56%, continue to say their companies have the right number of employees, but 15% said they plan to hire immediately, up from 13% last quarter. The percentage of survey participants who said their companies had too many employees shrank from 10 to 8.
There is a growing expectation the talent search will be competitive: Among the top 10 challenges identified within the survey, “availability of skilled personnel” rose from sixth a quarter ago to fourth.
“We’re seeing signs that businesses are thinking more concretely about resources they’ll need in place, from expanded staffing to investments in technology and other capital projects, to handle future growth,” said Arleen R. Thomas, AICPA’s senior vice president of management accounting and global markets. “Business expansion expectations, while still tempered, are the highest they’ve been in three years.”
Among other findings:
- Almost 69% of respondents said their companies will offer bonuses or incentives this year -- predominantly cash -- while another 12% are weighing options. As expected, bonuses became less prevalent during the recession, but appear to be on the rise again, the survey found.
- Some 63% of business executives said they expect their companies to grow at least a little in the coming year, the highest percentage since the first quarter of 2011.
- A majority of companies (75%) with hiring plans said they are seeking full-time workers. Only 2% said they were predominantly seeking part-time or temporary workers.
- Among key performance indicators, anticipated revenue growth was flat compared to last quarter. Profit and headcount expectations showed improvement.
- Technology continued to build on its position as the most optimistic sector, followed by construction. The health-care sector and health-care providers were the least optimistic. The finance and insurance sectors, meanwhile, rebounded strongly in sentiment in the quarter.
A copy of the full report can be found on the AICPA website.
SOURCE: American Institute of Certified Public Accountants
Published by The Business Journal, Youngstown, Ohio.
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