This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Optimism Dips Among Executive CAs As U.S. Economy Remains A Concern: CICA Business Monitor

TORONTO, March 8, 2013 /CNW/ - Optimism about the national economy is down among Canada's executive chartered accountants for the second straight quarter, according to the latest CICA Business Monitor (Q1 2013).

Only 26 per cent of those surveyed in the first quarter of 2013 are optimistic about how the Canadian economy will perform over the next 12 months. That is down from 31 per cent in the final quarter of 2012 and from 34 per cent in Q3 2012. Most respondents are neutral or taking a wait and see approach (64 per cent) while 11 per cent are pessimistic about what lies ahead for the economy.

Forty-four per cent of the respondents believe the state of the U.S. economy is the strongest challenge to economic growth in Canada. Uncertainty surrounding the Canadian economy and consumer confidence both rank second at 12 per cent. It is worth noting that just seven per cent of respondents cited the European debt crisis.

"Uncertainty both at home and south of border is reflected in the survey findings," says Kevin Dancey, FCPA, FCA, president and CEO, Canadian Institute of Chartered Accountants (CICA)*. "Clearly, most of the executives are waiting for a clearer picture to emerge."

Company Performance

Just like with the national economy, the executive CAs surveyed are less optimistic about how their companies will perform over the next 12 months. Forty-six per cent of the respondents are optimistic compared with 56 per cent in Q4 2012.

"Company optimism generally runs ahead of economic optimism in our research," explains Dancey. "The executives have the best read on their own operations."

Despite the dip in company optimism, some encouraging projections are emerging. Seventy per cent of respondents expect their revenues to increase in the next year and 63 per cent are forecasting an increase in profits.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs