KEY MESSAGES FROM SURVEY

There has been a very slight change in reported hiring plans. Thirteen percent of respondents, up from 10 percent last quarter and 8 percent a year ago, now indicate that they don't have enough employees and plan to hire. The number that don't have enough and are reluctant to hire dropped a corresponding 3 percent from 22 percent in Q4 2010 to 19 percent this quarter.
Hiring plans are improving slightly. However, expectations for employment returning to pre-recession levels for many pushed out into 2012. Only 7 percent are expecting to return to pre-recession levels in the next 12 months. Twenty three percent are expecting that to happen in 12-24 months. Twenty eight percent do not expect to return to pre-recession levels in the foreseeable future. Seven percent have already returned to prerecession levels and 31 percent indicate that they did not decline.
Cash and liquidity positions have changed very little. Almost half (46 percent) of respondents are where they want to be with 30 percent indicating they have too much and 24 percent indicating too little. Only 11 percent have plans to deploy.
Customer Demand, Employee Healthcare costs and regulatory requirements remain the top challenges with economic and Political Instability debuting at number four.
The number of companies planning increased IT spending rose from 47 percent to 52 percent, and the number planning increases in other capital spending rose from 42 percent to 48 percent. The average expected increase in IT and Other Capital Spending rose to 2.3 percent and 2.1 percent respectively.
Forty-five percent of respondents plan to take some advantage of the first-year tax deduction for eligible equipment in 2011, but only 12 percent expect to be able to take advantage of the full deduction. Most respondents (60 percent) believe that reducing the regulatory burden would have the most impact on job creation.

Methodology
The first quarter AICPA-UNC Business and Industry Economic Outlook Survey was conducted via an online questionnaire Feb. 9-24 and included 1,168 qualified responses from CPAs who hold leadership positions, such as chief financial officers or controllers in their companies. The overall margin of error was less than plus-or-minus 3 percentage points.

Instant Insights /

Press Release: CPAs most optimistic about economy since 2007

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