The latest the Association of Chartered Certified Accountants (ACCA) and Institute of Management Accountants (IMA) Global Economic Conditions Survey indicates a decline in global confidence among accountants and finance professionals in the third quarter.
It is claimed to have reached its lowest point since the fourth quarter of 2023 and falling below the historical average.
The survey highlights a drop in CFOs’ confidence, particularly in their assessment of new orders.
Despite an improvement in North America, confidence levels have not fully rebounded from previous declines. In contrast, Asia Pacific experienced a drop in confidence.
Western Europe also saw a fall, with the UK’s confidence declining amid concerns over potential tax increases in the upcoming budget.
The survey found that the proportion of respondents reporting increased operating costs remains high, suggesting that central banks should be cautious with monetary easing.
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By GlobalDataAccess to finance has become less of a problem as central banks have eased policies.
IMA Senior Director Europe Operations & Global Special Projects Alain Mulder said: “While the increase in confidence in North America is welcome, the key indicators are consistent with some slowing in the US economy and significant caution on behalf of businesses.
“But with the job market showing resilience and the Federal Reserve beginning its rate-cutting cycle, the most likely scenario for the US economy still looks to be a soft landing.”
Accountants were also asked to rank their top three risk priorities.
For the second consecutive quarter, regulatory change was stated as the primary concern for those in financial services, while economic issues topped the list for corporate sector respondents.
Cybersecurity emerged as the biggest worry for public sector entities and small and medium-sized practices.
Climate change also entered the top three concerns for the public sector, and talent scarcity and retention were ranked highest in Western Europe for the first time.
ACCA chief economist Jonathan Ashworth said: “The global economy has been quite resilient so far in 2024, but the latest survey of accountants points to some easing in growth at the current juncture.”
Earlier in October 2024, ACCA partnered with Global Growth Institute’s World Class Manager (WCM) programme, offering members exclusive access to enhance their leadership skills.
