CPA executives lowered expectations for profit and revenue growth over the next 12 months as optimism in the US economy slipped amid inflation worries and repercussions from both the Russo-Ukraine war and an economic slowdown in China, according to the third-quarter “Economic Outlook Survey” released by the American Institute of CPAs and the Chartered Institute of Management Accountants.

Only 18% expressed optimism about the US economy over the next 12 months — the same level as the second-quarter survey and an 11-year low.

The survey took place from Aug. 2 through Aug. 22 and includes responses from 375 CPAs who hold leadership positions such as CFO or controller.

“The degree of pessimism over the economy was unchanged this quarter after bottoming out in the spring,” said Ash Noah, VP and managing director of learning, education and development for AICPA and CIMA, which together form the Association of International Certified Professional Accountants.

“It’s concerning, though, that business executives’ views of their own company’s prospects are eroding,” Noah said. “Only 41% of survey takers expressed optimism about their organization’s outlook this quarter, down from 47%. That’s a reflection, at least in part, of the pressure we’re seeing on profit and revenue projections.”

Other findings:

• On hiring, 34% of business executives said their organizations are looking to fill roles immediately. Another 19% said they had too few employees but are hesitant to hire. Five percent said they had too many employees.
• Inflation was the top concern of business executives for the fourth straight quarter. The other top two challenges were identical to last quarter: “Materials/supplies/equipment costs” and “availability of skilled personnel.”
• The percentage of business executives who said their companies plan to expand fell three points to 49% from 53% quarter over quarter. The number who said they expected their companies to contract rose to 25% from 14%.