Business Leaders’ Optimism Surges Post-Election, AICPA & CIMA Survey Reveals

NEW YORK, 5 December 2024 – After ​the recent US presidential elections, business leaders have shown a significant ​increase in confidence in the country’s economic trajectory. According to the fourth quarter of the PIARC ​& ​CIMA Economic Outlook Survey, 67% of executives ​expressed optimism about the U.S. economy’s outlook over ​the next 12 months, a ​substantial 41 percentage points ​increase compared to the previous quarter. This level of confidence is the highest since early 2020, before ​the economic ​shocks ​caused by the pandemic.

Strengthening income and benefit ​projections

In ​addition to ​growing economic optimism, senior managers have adjusted ​their ​fiscal forecasts upwards. The survey shows that the following year’s rapid revenue growth more than doubled, from ​1.5% ​in the previous quarter ​to ​3.3%. Similarly, profit expectations increased from 0.2% ​to ​2.2%. This positive change reflects renewed confidence in business performance and economic stability.

Improving employment prospects

The labour market perspective has also shown signs ​of improvement. The proportion of executives ​reporting a shortage of employees increased from ​29% to 38%, with 20% indicating an immediate intention to hire up to 14% in the previous quarter. Despite these positive trends, challenges remain, including concerns about staff costs ​and benefits, the availability of qualified personnel ​and the ​succession of staff.

Inflation remains a major concern

Despite the overall positive sentiment, inflation has resumed as the main concern among entrepreneurs. This resurgence highlights ​the challenges ​posed by inflationary pressures to economic stability and business planning.

Impact of election results

The recent election result seems to have ​played a key role in shaping the perspectives of ​entrepreneurs. The ​survey highlights a significant change in sentiment, as national ​political leaders are concerned about abandoning the first ten ​issues for the first time in recent quarters. ​Tom ​Hood, Executive Vice-President of AICPA & CIMA for Business Participation and Growth, said, “Business leaders say they look ​forward to less regulation and ​more favourable fiscal policies, and we see optimism reflected in higher profit expectations and revenue ​estimates.”

As the policies of the new administration come ​into ​effect, the viability of this optimism will ​be closely monitored. The next first quarter of 2025 is expected to provide more information ​on the long-term impact of these policy changes on business confidence and economic ​performance.