New CPA Outlook Index: Highest Level Since 2007
Here's a brand new economic indicator - The CPA Outlook Index - just introduced jointly by the American Institute of CPAs (AICPA) and the UNC Business School and featured in today's WSJ. From the report:
"This quarter the AICPA/UNC Kenan-Flagler Economic Outlook Survey introduces a new index – the CPA Outlook Index (CPAOI). The CPAOI is a broad-based composite index that captures the expectations that our members (CEOs, CFOs, Controllers, and other CPA executives) have about the prospects for their own organizations, their expectations for revenues and profits, and their plans for spending and employment. It is a composite of nine survey measures at equal weights (see CPAOI inset for description).
The CPA Outlook Index (CPAOI) increased by .07 this quarter to reach .69, its highest level since the 3rd quarter of 2007. A quarter of that improvement (26%) is attributable to the increase in optimism about the US economy which had lagged the improvement in organizational optimism which had occurred during 2010. Also contributing notably to this quarter’s improvement were expectations for revenue and for training and development spending."
MP: One more piece of the mounting and overwhelming evidence that this recovery "has legs," to quote finance blogger extraordinaire Scott Grannis.