TORONTO, Dec. 20, 2012 /CNW/ - Canada's executive chartered accountants
are increasingly anxious about the U.S. economy heading into a new
year, according to the latest CICA Business Monitor (Q4 2012).
More than half of the executive CAs surveyed (55 per cent) believe the
state of the U.S. economy represents the strongest challenge to
economic growth in Canada, up sharply from 40 per cent in Q3 2012.
Uncertainty about the Canadian economy (21 per cent) is next followed
by the European debt crisis (7 per cent).
Almost six-in-ten respondents (56 per cent) are neutral about the
prospects for the Canadian economy over the next 12 months. Thirty-one
percent are optimistic compared with 34 per cent from the previous
quarter. Just over one-in-ten (13%) of the respondents are pessimistic
about what lies ahead for the economy.
"With our close ties to the U.S. economy, it only makes sense that there
is a lot of focus stateside," says Kevin Dancey, FCPA, FCA, president
and CEO, Canadian Institute of Chartered Accountants (CICA). "The fall
of 2012 has featured lots of uncertainty in the United States with a
presidential election and the looming fiscal cliff. Until a clearer
picture emerges, the wait and see approach by Canadian executive CAs
will likely continue."
Even though the executive CAs are closely watching things south of the
border, they are expressing growing optimism about how their businesses
will perform over the next 12 months. Business optimism among the
survey respondents is up slightly, climbing to 56 per cent in Q4 2012
from 50 per cent the previous quarter. Sixty-seven per cent of the
respondents expect their revenues to increase in the next year and 65
per cent are forecasting an increase in profits.
Turning to employment forecasts, 38 per cent of the respondents expect
the number of employees at their companies to increase in the next
year, down from 46 per cent in Q3 2012. Forty-three per cent anticipate
no change and only 18 per cent expect a drop in employment numbers.
The executive CAs rank reducing costs, improving productivity and
increasing domestic sales as being most important for their companies
The CICA Business Monitor is issued quarterly, based on a survey commissioned by the CICA. The report draws upon business insights of
Canadian CAs (including Quebec CPA, CA and Ontario CPA, CA members) in
leadership positions in privately and publicly held companies.
For the Q4 2012 study, emailed surveys were completed by 298 of 4,377
identified by the CICA as holding senior positions (CFOs, CEOs, COOs
and other senior executive roles). The response rate was seven per
cent, with a margin of error associated with this type of study at ±
5.7 per cent, with a confidence level of 95 per cent. The survey was
conducted by Harris/Decima Inc. from December 4 to 18, 2012. A
background document is available online at www.cica.ca/businessmonitor.
Chartered Accountants (CAs) are Canada's most valued, internationally recognized profession of
leaders in senior management, advisory, financial, tax and assurance
roles. Through their integrity, expertise, and internationally
recognized qualification standards, Canada's 82,000 CAs sustain their
influence and leadership position both in Canada and globally. As
trusted business advisors to Canadian organizations of all sizes,
Canada's CAs foster confidence in Canadian business and contribute to
the health and sustainability of Canada's capital markets and economy.
The Canadian Institute of Chartered Accountants (CICA) represents
Canada's CA profession both nationally and internationally. The CICA is
a founding member of the International Federation of Accountants (IFAC)
and the Global Accounting Alliance (GAA).
SOURCE: Canadian Institute of Chartered Accountants
For further information:
or to arrange an interview, contact:
Tobin Lambie, Manager, Media, CICA