DURHAM – Business executives’ collective optimism about the state of the U.S. economy soared 10 percentage points to 74 percent from the previous quarter, a new survey finds. And results were gathered before the U.S. Senate passed tax reform legislation that could mean substantial cuts for many firms as well as individuals.
Also, 70 percent of those participating in the new survey say their outlook is more positive entering 2018. That’s also a post-recession high.
According to the American Institute of CPAs, which operates one of its major offices in Durham, the level of optimism is at the highest since the 2008-2009 recession.
Its CPA Outlook Index, which is a gauge of executive sentiment within the AICPA survey, hit a score of 79, another post-recession high. That’s one point better than the index for the fourth quarter of 2014. The maximum score is 100 with 50 considered neutral.
According to the American Institute of CPAs, which operates one of its major offices in Durham, the level of optimism is at the highest since the 2008-2009 recession.
“While the survey was fielded with tax reform deliberations underway, it’s important to note it closed before passage of the Senate tax bill this past weekend, so survey sentiment does not reflect that development,” the AICPA pointed out. The quarterly survey was taken in November.
AICPA Economic Outlook Survey polls chief executive officers, chief financial officers, controllers and other CPAs in U.S. companies who hold executive and senior management accounting roles.
“In addition to expectations for business tax reductions, executives cited several factors for the boost in optimism, including rising consumer demand, a strengthening global economy and the perception of more pro-business policies at home,” said Arleen Thomas, a managing director for the AICPA. “On the other side of the ledger, some respondents expressed concern about political dysfunction and fallout from potential stock market and real estate bubbles.”
