Confidence among accounting and finance professionals about current economic conditions globally ticked up slightly in the second quarter of this year, the first increase since mid-2024, but overall sentiment remains weak by historical standards, according to a new survey from the Association of Chartered Certified Accountants and the Institute of Management Accountants.
Geopolitics topped accountants’ global risk priorities in Q2 for the first time as indicated in the latest Global Economic Conditions Survey. Economic fears related to regulatory and compliance risks was the second-highest risk priority, tied with concerns around inflation, recession, and interest rates. Talent scarcity and cybersecurity remain critical but were slightly less prominent this quarter.
Climate change, fraud, and supply chain risks remained lower down the agenda for the survey’s 420 respondents, suggesting a renewed focus on macro-external volatility, with boards and executives reacting to intensifying global conflicts, regulatory unpredictability, and economic pressure, according to the ACCA and the IMA.
“This quarter’s survey numbers reveal a pivot from Q1’s economic anxiety to a more nuanced and fragmented view of today’s risk landscape,” the survey report says. “With boards and executives reacting to rising costs, fractured supply chains, and unpredictable policy shifts, accounting professionals across sectors and geographies expressed growing
concern not just with external threats but also with internal exposure: governance gaps, cost fragility, workforce strain,
and cultural and digital readiness.
“This shift in sentiment shows how accounting professionals are increasingly worried about their organizations’ internal
resilience—their ability to adapt, sustain margins, and lead amid the constant change and disruption,” the report continued.
Of the major regions, North America saw a modest rebound in confidence, particularly in the U.S., but it still hovers near record lows due to high import tariffs and persistent policy uncertainty.
Specifically regarding North America, the survey report says:
Confidence rose somewhat in North America in Q2 but still remains close to its Q1 record low [see chart above]. The Employment Index also increased from a very low level, driven by a decline in the proportion of respondents reporting ‘Staff cuts/hiring freeze’, although the proportion reporting ‘New jobs created/ hiring resumed’ declined again, and remains close to record lows. The Capital Expenditure Index was largely unchanged but remains weak by historical standards. There was a fall in the New Orders Index, which is now quite meaningfully below its historical average, albeit not significantly different from some of the levels since Russia invaded Ukraine. Somewhat encouragingly, after jumping in Q1, the proportion of accountants reporting increased operating costs eased slightly, while remaining elevated historically. All in all, our key indicators point to significant caution on behalf of companies, which is hardly surprising given the heightened policy uncertainty in the U.S. With higher import tariffs set to push up inflation over coming months, and ongoing uncertainty, sub-par U.S. growth looks likely in the second half of the year.
Western Europe saw another moderate gain in confidence, aided by further improvement in the United Kingdom from its record low in Q4 2024. By contrast, confidence fell sharply in Asia Pacific, erasing the gains made in Q1 2025. The deterioration in the backdrop for global trade, amid major changes in U.S. trade policy, was likely the key factor weighing on sentiment.
“Global growth has generally proved quite resilient in the first half of 2025, despite the large increases in U.S. tariffs and massive rise in uncertainty,” Jonathan Ashworth, chief economist at the ACCA, said in a statement. “While the key GECS indicators are certainly not pointing to a global economy in rude health, with confidence in particular remaining low, neither are they suggesting that a major downswing is imminent. Nevertheless, with higher tariffs likely to push U.S. inflation higher over the coming months, and as uncertainty and tariffs weigh on the U.S. and global economies, some slowing in global growth looks likely over the second half of 2025.”
The global New Orders and Capital Expenditure indices both declined modestly, although the former is at its historical average and the latter not much below. Both are at levels broadly similar to other readings since the aftermath of Russia’s invasion of Ukraine. Meanwhile, the Employment Index improved and isn’t that far below its historical average.
“According to accountants, global cost pressures eased, although there are divergent regional pressures,” said Alain Mulder, senior director of Europe operations and global special projects at IMA. “The proportion of North American respondents reporting increased operating costs eased slightly, although it remains on the high side historically after the large increase in Q1. This raises the risk that firms may attempt to raise prices over the coming months. Rising inflation would complicate the task of the Federal Reserve, if slowing growth and an easing jobs market begins to increase the need for a loosening in monetary policy.”
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