Certified Public Accountant Financial Executives Foresee Continuing Decline in the U.S. Economy; Outlook Dims for Finance, Real Estate, Retail Businesses
Wed Feb 20 2008
http://newswire.ascribe.org/

NEW YORK, Feb. 20 (Ascribe Newswire) -- Expectations for the U.S. economy turned sharply negative among senior-level executive CPAs as the outlook for finance, real estate and retail trade declined in the first quarter, according to the latest Business and Industry Economic Outlook Survey of the American Institute of Certified Public Accountants and the University of North Carolina's Kenan-Flagler Business School.

For the first time since the AICPA survey began in December 2005, pessimists outnumbered optimists and did so by nearly a five-to-one margin. The economy emerged as the top issue facing lawmakers and U.S. presidential candidates. A 59 percent majority of CPA respondents said they were pessimistic or very pessimistic about the economic outlook for the U.S. over the next 12 months. Meanwhile the new survey found only 11 percent of CPAs in executive positions expressed optimism about the economy.

"This is a strong signal from CPA financial executives serving in business and industry that they think the U.S. economy is slowing down," said Arleen Thomas, senior vice president of the AICPA. "At the same time, CPAs express more confidence in their own businesses, suggesting the downturn may not be as deep as some may fear." Forty-six percent of executive CPAs said they were optimistic or very optimistic about their organization's economic prospects over the next 12 months while 21 percent said they were pessimistic or very pessimistic. Most organizations still expect some growth in revenue, profits and employment.

"The good news is that executives anticipate increases in revenues, net income and employment for their firms in the next 12 months," said Mark Lang, PhD, a professor of accounting at UNC Kenan-Flagler. "The bad news is that they expect a downturn for the economy as a whole. In the end, the implications for the U.S. economy depend on which assessment is more accurate," Lang said.

A 57 percent majority said the economic stimulus package passed by Congress was necessary to forestall a recession. Asked to identify the top three issues facing U.S. policymakers in this election year, a third of respondents named economic growth, energy prices, and the value of the U.S. dollar as key concerns.