Accountants express growing fears over U.S. economy: CICA

Canada’s chartered accountants (CAs) are feeling increasing anxiety about the U.S. economy as we head into 2013, according to the latest CICA Business Monitor, a ...

Canada’s chartered accountants (CAs) are feeling increasing anxiety about the U.S. economy as we head into 2013, according to the latest CICA Business Monitor, a quarterly publication put out by the Canadian Institute of Chartered Accountants.

More than half of all executive CAs surveyed, 55%, feel that the state of the economy south of the border represents the biggest challenge to Canadian economic growth. This is a sharp increase when compared with the survey results from the previous quarter, which found 40% of respondents had similar concerns.

“With our close ties to the U.S. economy, it only makes sense that there is a lot of focus stateside,” said Kevin Dancey, president and CEO of the CICA. “The fall of 2012 has featured lots of uncertainty in the United States with a presidential election and the looming fiscal cliff.

“Until a clearer picture emerges, the ‘wait and see’ approach by Canadian executive CAs will likely continue.”

The survey found that 56% of respondents felt neutral about the prospects for the Canadian economy over the next year, and 31% felt optimistic, compared with 34% the previous quarter.

Other survey findings include:

  • 56% of CAs are feeling increasing optimism about their own businesses, compared with 50% the previous quarter;
  • 67% of respondents expect their revenues to increase in the next year;
  • 65% expect an increase in profits in 2013; and
  • 38% expect the number of employees in their businesses to increase in the next year, compared with 46% in the previous quarter.

ecrawford@biv.com

@EmmaCrawfordBIV

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