Summing up economic sentiment: Less revenue, more pessimism

CPA decision-makers in business and industry weren’t optimistic at the end of last year, but their outlook grew a bit sunnier as 2023 began. Now, as 2023’s midpoint approaches, the outlook of finance executives is again taking on a more pessimistic tone in a quarterly survey. Contraction plans are more common, and projections for revenue and profit have declined.

Ken Witt, CPA, CGMA, AICPA & CIMA’s associate director–Management Accounting Research and Development, discusses the results of the Economic Outlook Survey in this podcast episode.

What you’ll learn from this episode:

·         An overview of second-quarter survey results.

·         Why Witt now says that the fourth quarter of 2022 may not represent “the bottom” in terms of sentiment.

·         How the high-interest-rate environment is affecting companies.

·         Examples of more stringent lending requirements that businesses are facing.

·         The hiring outlook and projections for the coming 12 months for revenue and profit.