A Positive Outlook for the Future

Source: CPA Trendlines

The following includes excerpts, reproduced with permission, from an article in CPA Trendlines.

CPAs expressed their highest level of optimism on the U.S. economy since the third quarter of 2007, according to the latest AICPA/UNC Quarterly Economic Outlook Survey.

In addition, there was a slight improvement in expectations for hiring and an uptick in plans for capital spending for IT and other areas over the next 12 months. On a broader level, there was concern about inflation.

“We see a substantial bounce in optimism about the economy for the first time in nearly three years,” said AICPA Vice President for Business, Industry and Government Carol Scott. “The new composite index shows positive movements across the board. However, this seems to be tempered by concerns about inflation.”

Forty-eight percent of CPAs serving in executive positions expressed optimism about the U.S. economy in the first quarter, up 20 percentage points from 28 percent who were optimistic in the fourth quarter.

Companies with current hiring plans rose by three percentage points to 13 percent. All industries expect to increase hiring in 2011.

Fifty-seven percent of survey respondents are now optimistic or very optimistic about the prospects for their own companies. Sixty-six percent of respondents expect their businesses to expand during the next 12 months.

Up 21 percentage points from the last quarter, 55 percent of respondents expressed concern about inflation. Thirty-six percent of respondents indicated concern about rising material costs, while 18 percent are concerned with an increase in energy prices. However, 47 percent do not expect to pass increased costs onto customers during the next quarter.

For the complete article, read “CPA Optimism Rises Sharply.”

From CPA Trendlines, http://cpatrendlines.com, March 3, 2011.