CPA Business Execs’ Optimism About the Economy is Soaring Post-Election, AICPA Says

Following the November presidential election, CPA business leaders have a much more positive outlook about the U.S. economy and their own organizations for the next 12 months, according to the fourth-quarter AICPA & CIMA Economic Outlook Survey.

The quarterly survey includes 273 qualified responses from CPAs and Chartered Global Management Accountants (CGMAs) who hold leadership positions, such as CFO or controller, in their companies.

Two-thirds (67%) of CPA business executives said they were optimistic about the economy’s prospects over the next year, a steep rise of 41 percentage points from the previous quarter. It’s the highest the measure has reached since early 2020, when it stood at 74% before cratering due to pandemic-related business shutdowns and travel bans.

There also was a notable increase in business leaders’ outlook on the global economy, with those expressing optimism rising from 19% to 41%, quarter over quarter.

“Business executives say they’re looking forward to less regulation and more favorable tax policies and we’re seeing that optimism translate into higher profit expectations and revenue estimates,” Tom Hood, AICPA & CIMA’s executive vice president for business engagement and growth, said in a statement. “Our first-quarter 2025 survey, once the new administration’s policies actually begin to be put in place, will offer insight into whether the enthusiasm is sustainable or not.”

Inflation reclaimed the top spot for business concerns in the survey. Domestic political leadership, which has ranged from No. 4 to No. 7 on the list over the past three quarters, disappeared from the top 10 altogether.

Hiring plans also improved: 38% of organizations of all sizes now need employees, while 18%
continue to be hesitant to hire and 20% have plans to hire, up from 14% in Q3.

The AICPA survey is a forward-looking indicator that tracks hiring and business-related expectations for the next 12 months. In comparison, the U.S. Department of Labor’s November employment report, scheduled for release tomorrow, looks back on the previous month’s hiring trends.

Other key findings of the survey:

• Revenue and profit expectations for the next 12 months both rose substantially. Revenue growth is now expected to be 3.3%, more than double the 1.5% projection last quarter. Profit projections are now 2.2%, up from 0.2% last quarter.
• CPA business executives who said they were optimistic about their own organization’s outlook over the next 12 months rose from 41% to 53%, quarter over quarter.
• A majority (57%) of survey respondents expect their businesses to expand over the next 12 months, up from 44% last quarter.
• Those who said they had too few employees rose from 29% to 38%. One-in-five said they were ready to hire immediately, up from 14% last quarter. Employee and benefit costs, availability of skilled personnel and staff turnover all remained top concerns for employers.

The fourth-quarter AICPA & CIMA Economic Outlook Survey was conducted from Nov. 6 to 26, 2024.