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The latest ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) Global Economic Conditions Survey (GECS) suggests that global confidence among accountants and finance professionals declined moderately in Q3 and is now at its lowest since Q4 2023 and slightly below its historical average. CFOs’ confidence also fell, and in particular there was a sharp deterioration in their assessment of new orders. 

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Confidence improved in North America, although it recouped less than half of its fall in Q2. While the increase in confidence is welcome, the key indicators are consistent with some slowing in the U.S. economy and significant caution on behalf of businesses. But with the job market showing resilience and the Federal Reserve beginning its rate-cutting cycle, the most likely scenario for the U.S. economy still looks to be a soft landing.

By contrast, there was a marked decline in confidence in Asia Pacific. Concerns about the continued weakness of the Chinese economy likely weighed on sentiment, with the survey being completed before the Chinese authorities announced a pivot to a more aggressive policy stimulus. Confidence also fell quite materially in Western Europe, driven by a sharp decline in UK confidence, amid concerns about tax rises in the upcoming Budget.

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Meanwhile, the proportion of respondents reporting increased operating costs remains elevated by historical standards in most regions, suggesting central banks need to proceed quite cautiously with monetary easing, particularly given ongoing geopolitical events. On an encouraging note, the share of global respondents reporting problems accessing finance moved lower again amid policy easing by central banks.  

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We also asked accountants to rank their top three risk priorities and for the second quarter running, regulatory change was top for respondents in financial services, while the economy remained first for those in the corporate sector. Both public sector entities and small and medium-sized practices put cybersecurity as their biggest concern. For the first time, climate change claimed a top three spot, with the public sector placing it third. Another first-ever was by region, with Western Europe ranking talent scarcity and retention first. 

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Now over 10 years old, GECS – carried out jointly by ACCA and the Institute of Management Accountants (IMA) – remains the world’s largest regular survey of accountants, both in terms of the number of respondents and the range of economic variables monitored. 

GECS provides global and regional analysis of: 

  • North America
  • Western Europe 
  • Africa 
  • Asia-Pacific 
  • Middle East 
  • South Asia. 
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