TORONTO, January 31, 2023 /CNW/ – According to CPA Canada (CPA Canada) Business Monitor (Q4 2022) survey found that respondents are hopeful about the outlook for the domestic economy over the next 12 months. The results show that pessimism has fallen from 64% in Q3 to 54% in Q4. The business outlook is fairly stable, with 44% of her respondents feeling optimistic this quarter, compared to 40% in Q3.
Our research shows that many business owners are still concerned about how inflation will affect their companies.
Looking at key organizational metrics, results show a 10% increase in respondents expecting higher corporate earnings compared to 51% in Q3 (61% in Q4). ). Other metrics are somewhat consistent, with almost half (47%) of respondents feeling they will increase their profits over the next 12 months, compared to 42% in Q3. Additionally, 41% expect an increase in headcount, compared to 37% in Q3.
“Although this quarter’s results show less pessimism, concerns remain about the economy’s overall performance.” David-Alexandre Blassade, Chief Economist of CPA Canada. “We need more positive indicators in the coming months if we are to see a real shift in sentiment.”
When asked about the main challenges facing the economy, 21% of respondents are concerned about rising interest rates, compared to 16% who are concerned about inflation. With inflation trending downward, a significant proportion of respondents (73%) still claim it’s negatively impacting their bottom line, with 38% expecting inflation to affect their business for at least a year. I expect.
“Our survey continues to show that many business executives are concerned about how long inflation will affect their companies,” Brassard said. Stabilize or moderate slightly. ”
Additionally, current economic risks are forcing businesses to ponder what to do if business slows down. More than half of respondents (51%) would consider aggressive cost containment, 44% would consider downsizing, and 43% would defer business investment.
The CPA Canada Business Monitor is published quarterly based on research conducted by NielsenIQ on behalf of CPA Canada. This report is based on the business insights of professional accountants in leadership positions in privately held and public companies.
In the fourth quarter of 2022 survey, 425 of the 5,820 people CPA Canada identified as holding senior industry positions (CFO, CEO, COO, and other leadership roles) were in an email survey. I answered. Respondents work for a variety of small, medium and large companies, depending on the size of their workforce. The response rate was 16%, the margin of error associated with this type of study was ±5%, and the confidence level was 95%. The survey December 6-21, 2022For more information, see the research background document available online at cpacanada.ca/businessmonitorQ42022.
About CPA Canada
CPA Canada (CPA Canada) works with the provincial, territory and Bermuda CPA agencies to represent Canadian accounting professionals nationally and internationally. This collaboration enables Canadian professionals to champion best practices that benefit business and society, and to prepare members for an ever-evolving business environment characterized by unprecedented change. With more than 220,000 members, her CPA Canada is one of the world’s largest national accounting bodies. cpacanada.ca
Source CPA Canada
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