U.S. Accountants Got More Confident, but 77% Still Faced Higher Costs

A global survey found stronger U.S. sentiment and investment signals, even as inflation, energy prices and interest rates kept firms cautious.

• Confidence among U.S. accountants rose in the third quarter, even as confidence worldwide slipped slightly and stayed low by historical standards.

• Seventy-seven percent of U.S. respondents reported higher operating costs, while 45% named economic pressure as their top risk.

• Global new orders, capital spending and employment measures improved, but weak hiring and rising interest-rate expectations kept the outlook fragile.

Accountants are seeing a U.S. economy that is moving forward with a heavy backpack.

The latest Global Economic Conditions Survey (https://www.accaglobal.com/policy-and-insights/reports/global-economic-conditions-survey.html) from the Association of Chartered Certified Accountants and the Institute of Management Accountants found a marked rise in confidence among U.S.-based accountants during the third quarter. The U.S. capital spending measure also rose sharply, and the employment measure improved.

Those are useful signs. Businesses tend to invest and hire when they expect demand to hold up. But the survey's U.S. measures still sit below their historical averages, especially employment, and the new-orders measure dipped slightly.

That mix explains the odd mood: more confidence, but not much comfort.

The clearest warning is not buried in an index. It is sitting in company bills.

Seventy-seven percent of U.S. respondents said their operating costs increased in the quarter. Across all regions, 69% reported higher costs, while 82% of chief financial officers said the same.

Energy prices, inflation, import tariffs and borrowing costs were among the pressures cited by respondents. Higher costs force businesses into a choice they rarely enjoy. They can absorb the hit and lose margin, cut spending elsewhere, or raise prices and risk losing customers.

For accounting firms, that tension can show up in clients' forecasts before it reaches their year-end financial statements. A sales plan can look healthy while cash flow, margins and hiring plans quietly weaken.

Worldwide confidence slipped only slightly in the third quarter. It remains above the near-record low reached in the first quarter, but it is still in the weak range seen since late 2024.

The activity data looked better than the confidence reading. Global new orders moved a little above their historical average, and both capital spending and employment improved. The report also pointed to artificial intelligence investment as a source of support for growth and stock markets.

At the same time, confidence fell sharply in Asia Pacific after a large second-quarter jump. Western Europe improved, including the United Kingdom, but the regional split shows why one global headline can hide very different business conditions.

Nearly half of respondents worldwide expected interest rates in their country to rise over the next three months, up from 42% in the prior quarter. That expectation matters because another round of rate increases would make loans, expansion and working capital more expensive just as firms are already wrestling with higher costs.

Economic pressure was the top global risk, named by 24% of respondents. Geopolitical instability followed at 18%, while regulatory and compliance risks and cybersecurity each drew about 13%.

The U.S. result was more concentrated. Forty-five percent of U.S. respondents ranked economic pressure first, far ahead of the other risks.

That is more than a mood check for CPAs. It gives firms a reason to test client plans against a few plain questions: What happens if prices stay high? What if rates rise again? Which spending can move, and which bills cannot?

The survey does not say the U.S. is headed for a downturn. In fact, the investment and employment signals point to some strengthening. The catch is that resilience is being funded in a costly environment, and the margin for a bad surprise is getting thinner.