8:49 4 December 2022
Economy already in recession or will be before 2023
According to the fourth-quarter AICPA & CIMA Economic Outlook Survey, 51 percent of business executives believe the U.S. economy is already in recession or will be by the new year.
Only 12 percent of business executives expressed optimism in the U.S. economy over the next 12 months, the lowest level since the throes of the Great Recession in early 2009. That compares to 18 percent last quarter and 41 percent a year ago. Inflation, rising interest rates, and high energy costs were cited as critical reasons for pessimism in the outlook.
One significant overhang for finance teams in recent quarters is uncertainty. One-in-four survey takers say their organizations have increased their rounds of forecasting compared to what they were doing during the pandemic economy. Roughly another third say they are continuing a stepped-up level of forecasting from that time.
“We saw record increases in the frequency of forecasting and projections during the pandemic and that trend is continuing amid uncertainty over inflation, supply chain integrity, and recession risk,” Tom Hood, CPA, CITP, CGMA, the AICPA & CIMA’s executive vice president for business engagement and growth, said.
(WBJ)
