Subprime woes, credit market turmoil bring down financial executives' confidence in economy.

Optimism about the economy among CPAs serving as senior-level executives plunged in the fourth quarter of 2007 to its lowest level in three years, according the latest AICPA Business and Industry Economic Outlook Survey.

Less than one-third, or 30%, of respondents said in the survey conducted in Oct. that they were optimistic about the U.S. economic outlook over the next 12 months. That was a 17% drop from 47% who said in July they were optimistic. At the same time, pessimism rose in the latest survey to 26% from 15% of respondents in July who held negative views of the U.S. economy.

"This is the first time since we launched the Economic Outlook survey three years ago that so many CPAs in business and industry have expressed this level of anxiety about the state of the U.S. economy," said John Morrow, AICPA vice president for business, industry and government.

More than half of CPAs surveyed cited subprime mortgage losses, a...