CPA financial executives remain optimistic about economy, concerned about rising healthcare costs.
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Optimism over the outlook for the U.S. economy remained extremely stable among the nation's CPA financial executives this past quarter. After improving in first quarter 2007, optimism about the U.S. economy dropped in the second quarter and remained consistent quarter-to-quarter from the second to third. According to the AICPA Business & Industry Economic Outlook survey for third quarter 2007, 47% of respondents said they were optimistic or very optimistic about the economic prospects for the country in the next 12 months, while 65% expressed optimism about the prospects for their own organization. When asked about their state's economic outlook, 45% expressed optimism.
Optimism for organizations was backed up again this quarter with continued expectations of business expansion. When asked whether they expected their business to expand or contract this year, 66% expected their business to expand with 16% expecting it to expand a lot. Only 15% expected contraction.
Concerns about the housing market remain and have expanded somewhat to include concerns about the mortgage market, however. Meanwhile, concerns about fuel prices, which were quite pronounced in the second quarter, have subsided somewhat. Joining housing at the top of the list this quarter were concerns about government and the political climate. Other factors mentioned included the war in Iraq, inflation and interest rates.
The survey was conducted during July and more than 1,400 CPAs responded. Half the respondents (50%) were CFOs, 20% were...
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