Accountants Losing Confidence In Continued Growth
Although hardly bearish, the downward trend in the confidence accountants have in business growth is worth watching. Since hitting a peak of 61.65 in February of last year, the 6 month Accountants Confidence Index has declined more than 10 points.
Reported by AccountingToday and published in conjunction with ADP, the Index tracks accountants' confidence in U.S. economic growth. The May reading for the 6-month composite came in at 56.06. That's still well above the break point of 50, below which the 1,500 tax and accounting professionals in the monthly survey are expecting the economy to contract.
Five components make up the index: the economy, and the economic expectations for large, midsize and small clients and for their own firms. Confidence in the economy alone actually rose since bottoming in February at 48.5. Now, it's at 53.5.
Commenting on the decline in both the 3- and 6-month index, AccountingToday observed, "a growing number of pollees continue to note that they expect a slowdown in the time frame beyond [the short- and mid-term] as the current economic recovery nears its 10th year."