Executive business leaders reported major shifts in positive sentiment about the economy and their companies’ prospects after the presidential election, according to a fourth-quarter survey by AICPA & CIMA.
Compared to the third quarter, hiring plans increased, and 20% of leaders said they’re planning to hire in the near future.
While more than half of executives said they have the right number of employees at the moment, 7% said they have an excess. The remaining 38% have too few employees; but 18% of that number said they are hesitant to hire.
“Business executives say they’re looking forward to less regulation and more favorable tax policies, and we’re seeing that optimism translate into higher profit expectations and revenue estimates,” Tom Hood, executive vice president for business engagement and growth at AICPA & CIMA, said in a statement. “Our first quarter 2025 survey, once the new administration’s policies actually begin to be put in place, will offer insight into whether the enthusiasm is sustainable or not.”
In a survey of 273 certified public accountants in executive and senior management roles, 67% said they were optimistic about the economy’s prospects during the next 12 months, jumping 41 percentage points from the third quarter. The increase marked the highest measure since early 2020, when it was at 74% — right before the pandemic.
Views about the global economy also improved, with 41% expressing optimism, up from 19% during the third quarter.
More business executives expressed optimism about their own organization as well, increasing from 41% to 53%. More than half said they expect their business to expand during the next 12 months.
Inflation remains the top concern for executives, the survey found, as well as employee and benefits costs, availability of skilled personnel and staff turnover.
November job numbers showed a sharp increase from October, according to the latest Bureau of Labor Statistics report. The increase could reflect optimism about the job market — but may ultimately reflect an ongoing slowdown in the months ahead. A 2025 “soft landing” could occur, depending on what incoming lawmakers do at the beginning of the year, an Indeed economist said.
