Economic confidence among finance professionals hits highest level since the first quarter of 2023 , though cost concerns persist , according to a recent survey by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA).
The latest ACCA and IMA Global Economic Conditions Survey (GECS) reveals a moderate increase in confidence to put the index just above its historical average.
Add in small increases to the New Orders and Employment indices – both of which are slightly above their averages – and a positive picture emerges of a gradually improving economic outlook. That said, there was a small decline in the Capital Expenditure Index, which remains below average.
Encouragingly, the study found that there were gains in confidence in most regions.
Particularly noteworthy is the rise in Asia-Pacific which was the third largest on record and may reflect growing confidence in the resilience of the US economy.
Additionally, the rise in confidence among finance professionals in the region reflects signs of improvement in the Chinese data and wider global economy, and perhaps rising optimism that Japan may finally be exiting from its decades long battle against deflation.
Additionally, ACCA and IMA say Q1 2024 responses from the Global Risks Survey section of the GECS report demonstrate how the ripple effects of economic uncertainty have been exacerbated by rising geopolitical and talent scarcity challenges.
Respondents across all sectors and regions said that they are feeling the impact of talent retention risks, with numerous respondents describing the skills shortage as an epidemic.
Cybersecurity is also viewed as a significant threat, especially with advancements in generative AI making ransomware and other cybercrimes increasingly easier and quicker to carry out.
