Economic Confidence Rises but Business Spending Plans Slow Amid Persistent Uncertainty
Business confidence in the U.S. and global economies improved during Q3, according to a survey by AICPA and CIMA. Despite this optimism, companies are scaling back on expansion plans due to ongoing concerns about inflation, rising costs, and geopolitical tensions. The percentage of executives optimistic about the U.S. economy rose from 32% in Q2 to 36%, while global economic confidence increased from 19% to 24%. However, fewer organizations now expect to expand over the next year—dropping from 54% to 49%. Inflation remains a top concern for businesses, with nearly eight out of ten executives citing it as more dangerous than deflation. Hiring sentiment improved slightly, with an increase in companies reporting too few employees and plans to hire. Revenue growth projections also rose modestly, but investment spending on IT, capital projects, and training declined.
Topics: cost pressures economic confidence geopolitical uncertainty inflation