Global accountant confidence remains weak despite Q2 rebound

Confidence among professional accountants improved in the second quarter of 2025, but remains fragile and well below historical levels, according to a global survey conducted by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA).

The Global Economic Conditions Survey (GECS) reported the first rise in its confidence index since the second quarter of 2024. Despite the uptick, the index remains low by historical standards.

While the Employment Index showed a modest improvement, the New Orders and Capital Expenditure indices both edged down slightly. The New Orders index remains around its historical average, with capital expenditure not far below. Both measures continue to reflect conditions seen since Russia’s invasion of Ukraine in 2022. 

Regional performance was mixed. Confidence rose in North America, driven by improved sentiment among United States-based accountants, though it remains historically subdued. Western Europe also recorded moderate gains, supported by a recovery in the United Kingdom following its record low in the final quarter of 2024.

By contrast, sentiment in Asia Pacific deteriorated sharply, reversing the gains seen earlier in 2025. The report attributed this to worsening prospects for global trade, largely due to significant shifts in United States trade policy.

Jonathan Ashworth, chief economist at ACCA, said: “Global growth has generally proved quite resilient in the first half of 2025, despite the large increases in US tariffs and massive rise in uncertainty. While the key GECS indicators are certainly not pointing to a global economy in rude health, with confidence in particular remaining low, neither are they suggesting that a major downswing is imminent.

“Nevertheless, with higher tariffs likely to push US inflation higher over coming months, and as uncertainty and tariffs weigh on the US and global economies, some slowing in global growth looks likely over the second half of 2025.”

Alain Mulder, senior director for Europe operations and global special projects at IMA, added: “Global cost pressures eased according to accountants, although there are divergent regional pressures. The proportion of North American respondents reporting increased operating costs eased slightly, although it remains on the high side historically after the large increase in Q1, raising the risk that firms may attempt to raise prices over coming months.

“Rising inflation would complicate the task of the Federal Reserve, if slowing growth and an easing jobs market begins to increase the need for a loosening in monetary policy.”

For the first time, geopolitical tensions topped the list of global risk concerns among accountants. Economic risks tied with regulatory and compliance issues for second place. Talent scarcity and cybersecurity remained prominent, though slightly less so than in previous quarters, while climate change, fraud, and supply chain issues ranked lower on the agenda.

The survey reflects a shift in boardroom focus toward macro-external volatility, amid rising global conflict, regulatory unpredictability and sustained economic pressure.