Confidence edged higher globally, despite the
big drop in North America,
with chief financial officers in particular becoming more
optimistic
NEW
YORK and MONTVALE,
N.J., July 31, 2024 /PRNewswire/
-- Financial professionals in the U.S. and North America reported a sharp fall in
confidence in the latest Global Economic Conditions Survey (GECS)
from ACCA (the Association of Chartered Certified Accountants) and
IMA® (Institute of Management Accountants).
Confidence is now well below its historical average in North America, and the decline was even more
pronounced in the U.S.
'The American economy has slowed from the
heady pace of expansion in the second half of 2023."
Highlights and the full report are available at
https://www.imanet.org/about-ima/gecs.
Globally, confidence among accountants and finance professionals
edged slightly higher in Q2 2024 and is just above its historical
average. For chief financial officers (CFOs), all the key global
indicators rose, with sharp gains evident in the New Orders and
Capital Expenditure indices. Confidence among accountants is
significantly higher than its historical average in Asia Pacific, slightly above in the
Middle East and Western Europe, at its average in South Asia, and slightly below average in
Africa.
The proportion of global respondents reporting 'increased costs'
eased in Q2 but remains elevated by historical standards. Cost
pressures remain high in all regions except the Middle East.
Alain Mulder, Senior Director
Europe Operations & Global Special Projects at
IMA® said: 'The American economy has slowed from
the heady pace of expansion in the second half of 2023, and the
latest results raise the risk of some further moderation over
coming quarters. The probability that the U.S. Federal Reserve
begins easing monetary policy after the summer has increased,
although inflation developments over coming months will be
crucial.'
Jonathan Ashworth, Chief
Economist, ACCA, said: 'The GECS points to some further improvement
in the global economy in Q2. Further signs of a pickup in the
important Western European and Asia
Pacific regions are encouraging, although the decline in the
North American and U.S. indices bear watching closely.'
There were some notable regional differences. Western Europe-based accountants reported
another decent increase in confidence as the euro area and UK
economies continue to stage recoveries. Even Asia Pacific saw a small rise off the back of
a huge gain previously, and the New Orders Index increased
strongly. The region is benefitting from improvements in the global
economy, including in the manufacturing sector and the upward
moving technology cycle.
The GECS also asks accountants to rank their top three risk
priorities and, for the first time in a year, the economy is
not the top concern for respondents working in financial services,
although it is close to the highest it has ever been for those in
the corporate sector. The Q2 survey responses also reveal
how organizations are increasingly struggling to get a grip on
cybersecurity, which was ranked as the third-highest risk priority
for all sectors combined.
Ashworth concluded: 'Despite the resilience of the global
economy so far in 2024, many important downside risks and
challenges remain. Sticky inflation could limit central banks'
scope for monetary easing, while geopolitical and political risks
remain very elevated and will continue to create significant
uncertainty.'
About ACCA
We are ACCA (the Association of Chartered Certified
Accountants), a globally recognised professional accountancy body
providing qualifications and advancing standards in accountancy
worldwide.
Founded in 1904 to widen access to the accountancy profession,
we've long championed inclusion and today proudly support a diverse
community of over 252,500 members and 526,000 future members in 180
countries.
Our forward-looking qualifications, continuous learning and
insights are respected and valued by employers in every sector.
They equip individuals with the business and finance expertise and
ethical judgment to create, protect, and report the sustainable
value delivered by organisations and economies.
Guided by our purpose and values, our vision is to develop the
accountancy profession the world needs. Partnering with
policymakers, standard setters, the donor community, educators and
other accountancy bodies, we're strengthening and building a
profession that drives a sustainable future for all.
Find out more at: www.accaglobal.com
About IMA® (Institute of Management
Accountants)
IMA® is one of the largest and most respected associations
focused exclusively on advancing the management accounting
profession. Globally, IMA supports the profession through research,
the CMA® (Certified Management Accountant), CSCA® (Certified in
Strategy and Competitive Analysis), and FMAA™ (Financial and
Managerial Accounting Associate) certification programs, continuing
education, networking, and advocacy of the highest ethical business
practices. Twice named Professional Body of the Year by The
Accountant/International Accounting Bulletin, IMA has a global
network of about 140,000 members in 150 countries and 350
professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized
services through its six global regions: The Americas, China, Europe, Middle
East/North Africa,
India, and Asia Pacific. For more information about IMA,
please visit www.imanet.org.
About GECS
The Global Economic Conditions Survey (GECS), carried out
jointly by ACCA and IMA, is the largest regular economic survey of
accountants around the world, in both the number of respondents and
the range of economic variables it monitors. The GECS has been
conducted every quarter for over 10 years. Its main indices are
good lead indicators of economic activity and provide a valuable
insight into the views of finance professionals on key variables,
such as investment, employment and costs.
Fieldwork for the 2024 Q2 survey took place between June 4th and 20th and gathered
665 responses.
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SOURCE ACCA (the Association of Chartered Certified
Accountants)