The Association of Chartered Certified Accountants (ACCA) and Institute of Management Accountants Global Economic Conditions Survey showed a fall in confidence among accountants globally in the third quarter (Q3).
Although confidence remains above the near-record low seen in Q1, following the outbreak of conflict in the Middle East, it is still low compared to late 2024.
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Sentiment among chief financial officers (CFOs) improved slightly, but the overall tone remains cautious.
The Global New Orders Index increased and now sits marginally above its long-term average. Its level is broadly in line with readings recorded since the start of the Russia-Ukraine conflict.
The Global Capital Expenditure and Employment indices also edged higher.
Downside risks rose as energy prices and inflation increased again in recent months. Government bond yields have also climbed sharply, while monetary policy has tightened.
Rising costs remain a significant concern for businesses. Nearly 70% of accountants surveyed worldwide reported higher operating costs in Q3.
Among CFOs, 82% reported increased costs, only marginally below the previous quarter’s figure.
In addition, almost half of respondents expect interest rates in their country to increase over the next three months, compared with 42% in Q2.
North America recorded a strong increase in confidence in Q3, led by a marked improvement in the US, where the survey’s main indicators suggest that economic momentum is strengthening. Western Europe also reported a modest improvement.
In contrast, confidence in Asia-Pacific fell sharply after a substantial rise in Q2.
Economic conditions remained accountants’ leading risk concern in Q3, cited by 24% of respondents.
Geopolitical instability followed at 18%, while regulatory and compliance risks and cybersecurity were cited by roughly 13%.
ACCA chief economist Jonathan Ashworth said: “While the global economy has shown remarkable resilience this year, downside risks remain prevalent.
“The longer energy and other prices remain elevated, the greater the pressure on firms to pass on their cost increases, which would weigh on consumers and increase the likelihood of further rate hikes by the major central banks.”
