CPA financial executives continue pessimism on economy.

Expectations for the U.S. economy remain negative among senior-level executive CPAs, according to the second quarter 2008 Business and Industry Economic Outlook Survey conducted by the AICPA and the University of North Carolina's Kenan-Flagler Business School. A 57% majority of CPA respondents said they were pessimistic or very pessimistic about the economic outlook for the U.S. over the next 12 months, relatively unchanged from 59% who held negative expectations in the first quarter. The survey found just less than 12% of CPAs in executive positions expressed optimism about the economy, virtually unchanged from 11% in the first quarter.

However, despite continued pessimism about the economy as a whole, most CPAs seem cautiously optimistic about the prospects for their own companies over the next 12 months, with particular strength in health care, technology and services. Still, the downturn continues to negatively affect plans for capital expenditures, research and development and employee training, which may have...