The results of ACCA's Global Economic Conditions Survey for the fourth quarter of 2010 show that twice the number of accountants as compared with the previous quarter (28% as opposed to 14%) believe that the recovery is slipping away.
Faith in the recovery is also at its lowest level in 18 months, with less than a third of respondents (32%) believing that conditions are improving - or are about to. In the previous quarter, nearly half (47%) were optimistic about economic prospects. While the SME sector appears to be the most resilient, followed by the private, non-financial sector, there has been a significant drop in confidence in accountants working in large financial services companies.
This may be as a response to developments such as the economic crises in some European countries. Finally, as had been feared, confidence levels among public sector accountants are lower than were seen during the depths of the downturn, and the loss of confidence in this sector continues to accelerate.
The survey has also shown that accountants see governments as being powerless to prevent a new downturn. As a result, assessments of government policy have decoupled from economic conditions and remained relatively positive. The survey shows that late payment is on the increase, as is the number of insolvencies. The outlook for investment has also deteriorated, with businesses putting off decisions until the economic outlook becomes clearer.
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