Most accountants in leadership positions are not feeling overwhelmingly positive about Canada’s economy for the next 12 months, according to the Chartered Professional Accountants of Canada’s (CPA Canada) latest quarterly business monitor report.
Exactly half of the accountants surveyed for the third quarter of 2016 are neutral about the country’s economic prospects while 29% are pessimistic. Only 21% of survey participants are optimistic, according to CPA Canada’s report.
Accountants cite the price of oil as the top challenge to growth in the Canadian economy, which has been the top concern for these professionals for eight consecutive quarters. The state of the U.S. economy was the second most frequently cited challenge.
“The upcoming U.S. election and the protectionist trade winds associated with it are likely factors contributing to doubt or hesitation here in Canada,” says Joy Thomas, president and CEO of CPA Canada, in a statement. “Not only is the future unclear regarding trade policies with the U.S. but there are other challenges including Canada’s transition to a low-carbon economy and possible ramifications from the [U.K.’s] vote [to leave the European Union].”
Accountants are more positive about the growth they anticipate for their own businesses as 61% of survey participants project growth over the next 12 months while 57% of those surveyed anticipate an increase in profits.
CPA Canada also used the report to gauge its members’ thoughts on innovation within their businesses. Almost nine in 10 (86%) survey participants agree that innovation is important to the success of their company and 61% say investing in innovation will be a priority over the next 12 months.
The ways in which survey participants plan to enhance their practices within the next year include the purchase of new technology or software for 38% of the accountants; the improvement of established processes (36%); and the introduction of new products or services (30%).
The current edition of CPA Canada’s business monitor incorporates responses from 548 professional accountants who are in leadership positions. Harris Poll conducted the email survey for the association between Sept. 19 and Oct. 6.
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