The U.S. economy and European debt crisis are the two biggest factors contributing to a sharp drop in optimism among Canadian executive chartered accountants, says the second quarter ‘CICA Business Monitor.’ Roughly one in five (21 per cent) of the respondents surveyed are optimistic about the outlook for the Canadian economy. That is down from 32 per cent in the first quarter of the year. Most of the respondents (62 per cent) remain neutral about the prospects for the national economy over the next 12 months. The survey respondents believe the three biggest hurdles for growth in Canada are the state of the U.S. economy (37 per cent), the European debt crisis (28 per cent), and uncertainty surrounding the economy (18 per cent). The executive CAs surveyed are not so optimistic about the prospects for their own companies over the coming year either. Company optimism fell to 49 per cent in the second quarter report, down from 57 per cent in the first quarter. Most surveyed still expect revenues and profits to rise, and a significant number of respondents anticipate a climb in employment numbers at their company. The decline in optimism, however, is evident in lower projected revenue, profit, and employment forecasts for the next 12 months.
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