Risk mounts for Canada housing: Fitch

Most professional accountants who lead their companies are not overwhelmingly convinced that the Canadian economy will perform well over the next 12 months, according to a survey conducted for Toronto-based Chartered Professional Accountants of Canada (CPA Canada).

More than one-quarter (26%) of these business leaders expressed a pessimistic viewpoint about what lies ahead economically while 53% have neutral feelings on the matter. In contrast, only 21% survey participants say they are optimistic in the second quarter (Q2) results for the most recent edition of the CPA Canada Business Monitor report.

Oil leads the way for the seventh consecutive quarter as the No. 1 challenge to the growth of the Canadian economy. Survey participants deemed the second biggest challenge to be the uncertainty surrounding the Canadian economy in light of circumstances in the global and U.S. economies.

“The survey findings are not surprising as Canadian business leaders must confront challenges at home and brace for possible repercussions from elsewhere,” says Joy Thomas, president and CEO of CPA Canada, in a statement. “Oil prices, the coming U.S. election and [the U.K’s decision to leave the European Union] are all factors likely contributing to the wait and see approach.”

The professional accountants who were surveyed made their opinions known on the U.K.’s vote to end its European membership, with 72% believing the result would have a negative impact on the global economy and 40% feeling this event will not bode well for the domestic economy.

Survey participants also wonder about the effects of the upcoming U.S. election on Canada, with 69% wondering if the incoming president will enact more restrictive trade policies.

However, these professionals are feeling more positively about their own business prospects, with 46% feeling optimistic, which is essentially unchanged from the results in CPA Canada’s previous quarterly survey.

Close to two-thirds (62%) of the survey participants project growth in their company’s revenue over the next year compared with the 59% who stated the same at the end of Q1. In addition, 36% of those surveyed predict their company’s employee count will grow while 25% expect a drop and 38% anticipate no change to their staffing levels.

These findings come from the responses of 486 professional accountants that hold senior positions in their companies. Harris Poll gathered the data for CPA Canada between June 24 and July 11 through a survey that was emailed to survey participants.