The Association of Chartered Certified Accountants and the Institute of Management Accountants reported a sharp decline Wednesday in economic confidence in the second quarter of the year among accountants and finance professionals in the U.S. and North America, according to a quarterly survey released Wednesday, although globally confidence seemed to be increasing.

The ACCA and IMA’s quarterly Global Economics Condition Survey indicated that confidence is now well below its historical average in North America, but the decline was even more pronounced in the U.S. in the second quarter of the year. 

On the other hand, confidence among global accountants and financial professionals improved again in Q2 2024, despite the big drop in North America. Globally confidence among accountants and finance professionals edged up slightly higher in Q2 2024 to just above its historical average. For CFOs, all of the main global indicators rose, with significant gains evident in the New Orders and Capital Expenditure indices. 

Confidence among accountants was significantly higher than its historical average in the Asia Pacific region, slightly above in the Middle East and Western Europe, at its average in South Asia, and slightly below average in Africa. The proportion of global respondents reporting “increased costs” eased in Q2 but remains elevated by historical standards. Cost pressures remain high in all regions except the Middle East. 

“The American economy has slowed from the heady pace of expansion in the second half of 2023, and the latest results raise the risk of some further moderation over coming quarters,” said Alain Mulder, senior director of Europe operations and global special projects at IMA, in a statement. “The probability that the U.S. Federal Reserve begins easing monetary policy after the summer has increased, although inflation developments over coming months will be crucial.”

That was borne out by a statement at the Federal Reserve meeting Wednesday by Fed chair Jerome Powell saying that “a rate cut could be on the table” at the next meeting in September, although rates were left unchanged for now.

“The GECS points to some further improvement in the global economy in Q2,” said ACCA chief economist Jonathan Ashworth in a statement. “Further signs of a pickup in the important Western European and Asia Pacific regions are encouraging, although the decline in the North American and U.S. indices bear watching closely.’ 

There were other notable regional differences. Western Europe-based accountants reported another decent increase in confidence as the euro area and U.K. economies continue to stage recoveries. Even the Asia Pacific region experienced a small rise off the back of a huge gain previously, and the New Orders Index increased strongly. The region is benefitting from improvements in the global economy, including in the manufacturing sector and the upward moving technology cycle. 

The quarterly survey also asks accountants to rank their top three risk priorities and, for the first time in a year, the economy is not the top concern for respondents working in financial services, although it is close to the highest it has ever been for those in the corporate sector. The Q2 survey responses also reveal how organizations are increasingly struggling to get a grip on cybersecurity, which was ranked as the third-highest risk priority for all sectors combined.