AICPA Survey: Coronavirus Concerns Grow Among Business Executives

Business executives’ outlook for the U.S. economy rose sharply in the past quarter, but concern is growing about the potential global fallout from the spread of coronavirus.

This is according to the first-quarter AICPA Economic Outlook Survey, which polls CEOs, CFOs, controllers and other CPAs in senior management roles.

Some 61% of respondents expressed optimism about the U.S. economy’s overall outlook over the next 12 months, up from 50% last quarter. But responses in the final week of the survey, following dramatic stock market declines as the coronavirus spread, were decidedly more pessimistic.

Most businesses said they have seen no impact from coronavirus yet, although 21% reported at least a slight impact. Those impacted said they had seen some combination of supply chain interruptions (10%), factory shutdowns in China or other affected regions (7%), and decreased sales to China (5%) or other markets (3%).

Some 7% of business executives said their companies had made a minor downward adjustment to their profit and revenue forecasts due to virus concerns, while 51% said they had made no change but were closely monitoring the situation.

Forty-two percent said they didn’t expect to have to make any coronavirus-related adjustments, but – like the U.S. economic optimism question – responses late in the survey cycle showed much less confidence.

The AICPA survey is a forward-looking indicator that tracks hiring and business-related expectations for the next 12 months. In comparison, the U.S. Department of Labor’s February employment report, scheduled for release tomorrow, looks back on the previous month’s hiring trends.

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