Corporate financial executives are less optimistic about the U.S. economy, and businesses remain reluctant to hire in the face of worries about inflation, weak demand and other factors.
The American Institute of Certified Public Accountants released its second-quarter Economic Outlook Survey this morning, showing that its outlook index dropped three points to 66. The survey of 1,093 CPAs was conducted May 11-26.
While a reading higher than 50 is still positive for growth, the decline reinforces recent data showing a broader pullback in the economy. The executives surveyed, including chief financial officers, are considered good predictors of the broader economy, since they oversee companies' finances and help set strategy.
"The flush of optimism we experienced earlier this year has given way to more moderate expectations for the U.S. economy,” Carol Scott, AICPA vice president for business, industry and government, said on a conference call. "We've lost a lot of the momentum we had earlier this year."
This was the first quarter the AICPA, a trade group with offices in Durham, conducted its survey without the help of UNC Chapel Hill's Kenan-Flagler Business School.