Optimism about the US economy tempered among certified public accountants who hold leadership positions in their companies — such as CEO, CFO or controller — since the last quarter, according to the second-quarter Economic Outlook Survey released by the American Institute of CPAs. However, hiring plans continue to improve.

Seventy-four percent of the CPA executives surveyed said they were optimistic about the economy over the next 12 months, down from 79% in the first-quarter survey. The decline was partially attributable to concerns about trade and political uncertainty, survey respondents said. Business executives’ optimism about the outlook for their own organizations also edged down one percentage point to 70%. However, both sentiments fall in the uppermost range of post-Great Recession assessments.

“Despite their more tempered views on growth, business executives still see a strong hiring picture over the next year,” said Arleen Thomas, AICPA’s managing director of Americas market, global offerings and CGMA exam, management accounting. “Labor market tightness continues to be a concern, with companies encountering difficulty in recruiting candidates with the right skills.”

Overall, 48% of the executives surveyed reported their company currently has the appropriate number of employees, down from 50% in last quarter’s survey. The percentage of companies planning to hire rose to 30% from 27% in the first-quarter report. Respondents who said they had too few employees but were reluctant to hire edged down to 13% from 14%.

The report also found “availability of skilled personnel” remains the top challenge facing organizations. Regulatory requirements/changes jumped to second from fourth, while domestic competition dropped from second to fourth. Employee and benefit costs maintained its third-place ranking and staff turnover maintained its top ten ranking at No. 7.

Meanwhile, the CPA outlook index — a gauge of executive sentiment within the survey — fell two points in the second quarter to 79 with all nine components either down or flat this quarter, except for employment, which rose one point. An index rating above 50 indicates a positive outlook.

The survey of AICPA business and industry members was conducted from May 8 to May 23, 2018, and included 831 qualified responses.