Survey by CPA Canada shows unchanged sentiment from previous period
A new survey conducted for CPA Canada reveals pessimism among a significant number of the country’s business leaders about the nation’s economic prospects over the next 12 months.
According to the latest CPA Canada Business Monitor, which drew responses during the fourth quarter of 2019, roughly three in ten (29%) of professional accountants in leadership positions surveyed were pessimistic, representing no significant change from the previous quarter. Optimism among the respondents was only slightly lower at 26%, while the largest share of participants were neither optimistic nor pessimistic.
Among the top challenges to Canada’s economic growth cited by respondents, the most popular was uncertainty surrounding the Canadian economy (19%). Other notable issues were protectionist trade sentiments in the U.S. (13%), a lack of skilled workers (10%), and the state of the U.S. economy (10%).
“[T]he fourth quarter of 2019 was a tumultuous time, dominated by the escalating trade war between the US and China, elections in both Canada and Britain, as well as continued economic difficulties faced by the Prairie provinces,” CPA Canada President and CEO Joy Thomas said in a statement. “Even with election outcomes decided in Canada and Britain and signs of easing of international trade tensions, uncertainty remains.”
In contrast to their uncertain view of the national economy, respondents to the survey expressed a more confident outlook for their own organizations. Half reported optimism on the prospects for their business over the next 12 months — a slight uptick over the previous quarter. Just 21% expressed pessimism on their organization’s prospects in 2020, while 28% had a neutral stance.
Bullish predictions for the next year with respect to respondents’ own businesses included increased revenues (64%), increased profits (60%), and a rise in employee numbers (39%). The topmost priority most cited by respondents was increasing sales in Canada (23%), with others citing improved productivity (16%), attracting/retaining employees (10%), and paring costs (9%).
The latest survey also looked at the future of data and its governance, which CPA Canada said it considers as a major focus. Business leaders surveyed agreed on its importance heading into the next decade, with 56% indicating it as either a high priority or the top priority. Another 30% rated it a moderate priority, with 12% suggesting it’s a low priority and 2% not considering it a priority at all.
But when asked how they assign responsibility over data governance in their organizations, 11% said one person has oversight, 42% said it was a shared responsibility, and 44% said no one was in charge of it. Another 3% either didn’t know or were unsure who was in charge of that concern within their organizations.
