Minimal growth in employee numbers predicted as optimism holds steady: CPA Canada Business Monitor

TORONTO, June 7, 2013 /CNW/ - Minimal growth in employee numbers is anticipated with only a one per cent gain forecast by the executives surveyed for the latest CPA Canada Business Monitor (Q2 2013).

The survey of professional accountants in leadership positions found that 40 per cent of the respondents expect employee numbers at their company to increase in the next 12 months. Thirty-seven per cent of the respondents anticipate no change and 21 per cent expect a drop. The outlook is essentially unchanged from the first quarter of the year.

"Any anticipated growth in employee numbers is welcomed," said Kevin Dancey, FCPA, FCA, president and CEO, Chartered Professional Accountants of Canada.

There is no movement when it comes to optimism about how the Canadian economy will perform over the next 12 months. In both the first and second quarters of this year, 26 per cent of those surveyed expressed optimism about what lies ahead for the economy.

Most respondents (61 per cent) remain neutral about the prospects for the Canadian economy while just 13 per cent are pessimistic.

The state of the U.S. economy is viewed as the strongest challenge to economic growth in Canada. Forty-two per cent of respondents listed it as the number one challenge, well ahead of uncertainty surrounding the Canadian economy (16 per cent) and consumer confidence (12 per cent).

"Lingering economic uncertainty, whether it be in the U.S. or at home, is affecting how the respondents feel about the Canadian economy and the prospects for their own company," noted Dancey.

Company optimism is basically unchanged. Almost half (47 per cent) are optimistic about how their company will perform over the next 12 months. Forty-six per cent were optimistic in the first quarter of the year.

There are positive projections for revenues and profits emerging from the second quarter survey. Sixty-two per cent of respondents expect their revenues to increase in the next year and 59 per cent are forecasting an increase in profits.

Background Information

The CPA Canada Business Monitor is issued quarterly, based on a survey commissioned by CPA Canada. The report draws upon business insights of professional accountants in leadership positions in privately and publicly held companies.

For the Q2 2013 study, emailed surveys were completed by 322 of 4,337 identified by CPA Canada as holding senior positions (CFOs, CEOs, COOs and other senior executive roles). The response rate was 7.4 per cent, with a margin of error associated with this type of study at ± 5.5 per cent, with a confidence level of 95 per cent. The survey was conducted by Harris/Decima Inc. from May 7 to May 29, 2013.  A background document is available online at www.cica.ca/businessmonitor.

About CPA Canada
CPA Canada is the national organization representing the Chartered Professional Accountant (CPA) profession in Canada. The Canadian Institute of Chartered Accountants (CICA) and The Society of Management Accountants of Canada (CMA Canada) created the organization on January 1, 2013, to support unification of the Canadian accounting profession under the CPA banner. CPA Canada is responsible for providing services to CAs and CMAs on behalf of CICA and CMA Canada as well as to CPAs and CGAs participating in the unification effort. CPAs will serve the public interest across all sectors of the economy with integrity, sound ethical practices, disciplined regulation and proven strategic management and financial expertise. Accounting bodies representing almost 90 per cent of Canada's professional accountants are committed to unification or have already merged under the CPA banner.

SOURCE: CPA Canada

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