Accountants in the UK experienced a slight uptick in confidence during the first quarter of 2025, following a record low in the final quarter of 2024, according to the latest Global Economic Conditions Survey (GECS). 

The survey, carried out by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA), revealed growing optimism among UK-based small and medium-sized enterprises (SMEs), although the degree of confidence varied across sectors. 

The New Orders Index saw a second consecutive increase yet remains below its historical average.  

The Employment Index showed a improvement, while the Capital Expenditure Index experienced a decline, both remaining at “historically” low levels.  

Worries about suppliers and customers going out of business have eased, though notable concerns remain in several critical areas, the survey found.  

ACCA UK head of technical and strategic engagement Glenn Collins said: “With business confidence so low and all the talk of government strategies, now is the time for action. The lack of final published strategies has a negative impact on businesses, who look to those plans to prioritise investment and grow.  

“While the global market flux provides a challenging environment, it also provides opportunities for business to expand into new markets and a lack of positive forward momentum is holding us back.” 

IMA senior director of Europe operations & global special projects Alain Mulder said: “New US policies on trade and government spending, and the uncertainty surrounding them, appear to have had a large negative impact on confidence, while declines in the global markets and signs of slowing in the US economy were likely factors too.” 

There was a “meaningful” rise in respondents reporting increased operating costs, reaching the highest level since Q1 2023.  

Indices for securing prompt payment and accessing finance both rose for the second consecutive quarter, potentially affecting business cashflow and financial viability. 

ACCA chief economist Jonathan Ashworth said: “Global growth has generally proved quite resilient over recent quarters. Nonetheless, the longer that confidence remains depressed, the greater the risk that a self-reinforcing negative cycle could potentially develop, with firms pulling back on orders, capital expenditure and hiring.  

“Unfortunately, with global trade tensions stepping up markedly since the survey was completed, the downside risks to the global economy have increased significantly.” 

Globally, the GECS found that accountants’ confidence dipped further at the start of 2025, although the decline was milder compared to the sharp drop in Q4 2024.  

The survey noted that confidence is at its lowest since Q2 2020, with North America experiencing a sharp fall. 

In North America, US-based accountants reported their second-lowest confidence levels ever, citing US trade policy and government spending cuts as key factors influencing sentiment.