Accountants see recovery in the mid-term
The Accountants Confidence Index continued its rebound from June, with accountants predicting modest contraction in the short term — and growth again within six months.
A large number of respondents said that they were concerned that attempts to prevent the spread of the coronavirus were causing more damage to the economy than necessary, though many others noted that a resurgence of cases could derail any potential economic recovery.
The ACI, published 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 ACI hit 45.35, a significant jump up from the previous month's 36.1 (though still far below the 50 mark that separates expectations of growth from expectations of contraction). The 6-Month ACI, meanwhile, came in at 52.07, up close to 10 points from last month's 42.35 — and just into expansionary territory.
The index components were all up significantly — with a particularly sharp rise in short-term expectations for the growth of the economy.
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.