The second semi-annual AICPA Business and Industry Economic Outlook Survey completed in December shows continued optimism for the economy for the first half of 2005. Responses from CPA executives indicated positive expectations for their own organizations over the next six months, supporting continued optimism for the economy as a whole. The outcome of the election had a positive impact on the outlook for 62% of the survey respondents. Projections for growth, financing, spending and workforce size all point to continued strength in the economy. However, survey results indicating fewer small companies with plans for capital spending and workforce increases, as compared to June 2004, suggest the possibility of a slight cooling off during the first half of 2005. When asked to weigh in on specific issues, more CPA executives indicated greater concern about inflation than unemployment, greater concern about federal deficits than Social Security and Medicare reform, and greater concern about health care reform than tax reform. Energy costs and employee expenses topped the list of issues that CPAs are more concerned about now than six months prior. Less concern was expressed about taxes and government regulation. This second semi-annual Business and Industry Economic Outlook survey represents the views of 631 AICPA decision makers including 351 CFOs and 104 CEOs in privately-held and public companies, not-for-profit and other organizations. 

This article originally appeared in the January 26, 2005 edition of BusIndNews

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