Respondents to a CPA survey of those in leadership positions have done a 180-degree turn in sentiment
The summer season has brought with it increasingly sunny outlooks among Canadian business leaders, according to a new poll.
Conducted by Nielsen for Chartered Professional Accountants for Canada (CPA Canada), the latest edition of the CPA Canada Business Monitor showed a sharp uptick in optimism about the economy’s prospects over the next 12 months.
Of the professional accountants in leadership positions surveyed, 31% were optimistic in the second quarter of 2019, compared to just 22% the previous quarter. Nearly a quarter (24%) expressed pessimism, while the largest contingent (44%) held a cautiously neutral position.
While the numbers on optimism show a stark quarter-on-quarter turnaround, they are practically flat when compared to results last year (32% optimism in 2018). Still, they’re far less rosy compared to Q2 2017, when half of respondents had an optimistic outlook.
“A better outlook among Canadian business leaders is always welcome and encouraging,” said Joy Thomas, president and CEO, CPA Canada. “However, it remains clear that there is still uncertainty, especially in relation to our large neighbour to the south.”
Among the top challenges to the Canadian economy cited by participants in the most recent survey, the most cited were:
- Protectionist trade sentiment in the US (19%);
- Uncertainty surrounding the Canadian economy (16%); and
- The state of the U.S. economy (11%)
The other challenges identified by respondents included a lack of skilled workers (10%); concerns on consumer confidence (7%); employee recruitment, retention, and development (6%); the state of the global economy (5%); and oil prices (5%).
Focusing on participants’ outlook on their own businesses, the survey found 61% forecasting increased revenues in the next 12 months. Over the same period, 58% were projecting an increase in profits, while 43% are anticipating an increase in the number of their employees.
The findings unveiled by CPA Canada run parallel to a summer survey of executives conducted by the Bank of Canada (BoC), which found a stronger outlook for future sales than one conducted three months earlier.
