AICPA economic outlook survey: CPA executives losing confidence.

Optimism about the U.S. economy among CPAs serving in corporate America's C-suites is declining, according to the AICPA's latest Business and Industry Economic Outlook survey.

Indeed, 54% of the respondents expressed opinions on the economy that ranged from neutral to very pessimistic, up from 41% expressing similar sentiments in Dec. 2005, the previous time the AICPA conducted an Economic Outlook survey.

However, most of these executives, 68%, remain confident about the prospects for their own companies. In fact, 58% project moderate to substantial growth by the end of 2006, and plans for spending, especially for information technology and new product development, continue to be strong.

Nonetheless, the growth for the most part will not stem from U.S. markets. Fewer companies, primarily those with more than $100 million in annual revenues, expect increased growth from the U.S. sector.

"The lack of enthusiasm for the state of the economy among these CPA executives seems to mirror that of consumers in general," said John Morrow, AICPA vice president for members in business and industry.

"According to a Conference Board survey, consumer confidence in the economy sank to a nine-month low in Aug."

Fewer companies are planning employee increases, and more are projecting workforce reductions. Of the CPA executives surveyed, 39% said their companies will beef up their workforces over the next six months, down from 45% who said the same thing in Dec. Twenty-one percent of those who work for the...