After three months of rises, our Accountants Confidence Index dropped sharply for this month, with expectations of contraction in the short-term.

The ACI, created in partnership with ADP, is a monthly economic indicator that leverages the insights of accountants into the strength and prospects of businesses in the U.S. The 3-Month and 6-Month ACI readings for this month were split on either side of 50, which is the divider between growth and contraction. The 3-Month ACI came in at 49.14, down from 50.96, while the 6-Month ACI hit 51.47, down from 53.25.

Most of the index components dropped somewhat, with the biggest declines in the mid-term outlook for large businesses, and the short-term outlook for small businesses.

The ACI is created from a monthly poll of the Accounting Today Executive Research Council, an online community of more than 1,500 tax and accounting professionals.