Executive CAS upbeat over future growth
O T TAWA • Fears of a U.S. recession dropped sharply among Canadian business leaders, whose new-found optimism is still tempered by fears about the growth track of our largest trading partner, according to the latest CICA/ RBC Business Monitor.
The first-quarter survey showed that the number of executive chartered accountants — among them chief executive, financial and operating officers — who believe the U.S. will fall into an economic recession over the next six months plunged to 22% from 62% previously.
At the same time, their optimism about the Canadian economy rose to 32% in the first quarter of 2012 from 20% the final quarter of 2011.
“It is not surprising that we’re seeing a rise in optimism about the Canadian economy and greater comfort with indicators stateside considering how closely our economies are linked,” said Kevin Dancey, chief executive of the Canadian Institute of Chartered Accountants. “These are positive signals, but not enough to suggest that we have achieved
a sustainable recovery in Canada.”
Concern about how sustainable the U.S recovery is also played on executive CAS’ minds, with 43% saying the U.S. could still be the biggest hurdle for growth.
Executives were optimistic about prospects for their own companies. Fifty-seven per cent — compared with 49% in the previous quarter — now feel good about the outlook for their firms.
The survey involved 320 chartered accountants and carried a margin of error of plus-or-minus 5.5% and a confidence level of 95%. It was carried out in early February.