AICPA Business and Industry Economic Outlook Survey€¦ · 2Q 2017 Economic Outlook Survey Survey Background • Conducted between May 2-17, 2017 • Quarterly Survey • CPA decision

AICPA Business and Industry Economic Outlook SurveyDetailed Survey Results: 2Q 2017

2Q 2017 Economic Outlook Survey

Survey Background

• Conducted between May 2-17, 2017

• Quarterly Survey

• CPA decision makers (primarily CFO’s, CEOs and Controllers)

• AICPA members in Business & Industry only

• 726 qualified responses

Survey Highlights


75Overall index eases a point

Down from 76 in Q1; up from 68 year-to-year from Q2, 2016

Slight declines, or flat across most components

Employment and IT spending continue to inch up

64%Now optimistic about U.S. Economy

Outlook for economy gives up 5% from new high mark of 69% in Q1

Retail trade rebounds to 58%, from only 38% in Q1

Healthcare also improves from 43% to 52%

Other sectors decline slightly

64%Have expansion plans, but size matters

Overall, expansion plans ease only slightly from 67% to 64%

Percentages of SME and mid-sized companies with expansion plans fall off sharply from Q1

Percentages of larger mid-sized and those with revenues > $1b increase slightly

CPA Outlook Index (CPAOI)


• The CPA Outlook Index is the composite of the following nine indicators at equal weights:

• U.S. Economy Optimism - Respondent optimism about the U.S. economy• Organization Optimism - Respondent optimism about prospects for their own organization• Expansion Plans - Respondent expectations of whether their business will expand over the next

12 months • Revenue - Expectations for increases or decreases in revenue over the next 12 months• Profits - Expectations for increases or decreases in profits over the next 12 months• Employment - Expectations for increases or decreases in headcount over the next 12 months • IT Spending - Plans for IT spending over the next 12 months• Other Capital Spending - Plans for capital spending over the next 12 months• Training & Development - Plans for spending on employee training and development over the

next 12 months

• A reading above 50 indicates a generally positive outlook with increasing activity. A reading below 50 indicates a generally negative outlook with decreasing activity.

The CPA Outlook Index is

a robust measure of

sentiment about the U.S.

economy that is

supported by the

unique insight and

knowledge that 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.



2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17CPA Outlook

Index 67 63 59 66 69 69 69 70 72 75 78 74 72 71 69 63 68 69 74 76 75

6763

5966

69 69 69 70 7275

7874 72 71 69

6368 69

74 76 75



Component 2Q16 3Q16 4Q16 1Q17 2Q17∆Q to

Q∆Y to

YU.S. Economic Optimism 59 58 76 79 77 02 18Organization Optimism 68 68 74 77 76 01 8Expansion Plans 69 72 74 77 76 01 7Revenue 74 75 78 81 79 02 5Profits 63 69 74 74 72 02 11Employment 63 66 68 71 72 01 9IT Spending 76 75 77 78 80 02 04Other Capital Spending 70 71 73 71 72 01 02Training & Development 67 70 71 73 73 00 06Total CPAOI 68 69 74 76 75 01 07

CPA Outlook Index (CPAOI) vs. GDP


1Q16 2Q16 3Q16 4Q16 1Q17 2Q17CPA Outlook

Index 63 68 69 74 76 75

Changein GDP 0.8% 1.4% 3.2% 2.1% 0.7%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

0

10

20

30

40

50

60

70

80

90

100

GDP Growth

CPA Outlook Index

U.S. Economy, Organization and Inflation


64%Optimism for U.S. economy declines from Q1 high of 69%Chaos and uncertainty noted by both optimists and pessimists

Hopes for regulatory relief, tax reform, and infrastructure spending continue

Concerns expressed about i-rates, possibility of RE and stock markets being overvalued, and proposed changes more aimed at large scaled entities

64%Organization optimism falls slightlyOptimism for respondent’s own organization eases 2 points from 1Q high of 66%

The percentage of companies with expansion plans also eased from 67% in Q1 to 64%

The percentage of companies expecting their businesses to contract remained constant with Q1 at 13%

31%Now concerned about inflation Concern about labor costs continues to be most significant, increasing from 40% to 42%

Raw material cost increases also increase another point to 25%, up from 24% in Q1, and 20% in Q4, 2016

Energy cost concerns constant at 8%

Interest rate worries up from 21% to 22%

The economic outlook for the U.S. economy, your organization, and the expansion plans over the next 12 months


Optimism & Expansion

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17U.S. 34% 22% 21% 32% 49% 44% 38% 49% 51% 52% 64% 68% 52% 48% 45% 28% 37% 38% 62% 69% 64%

Organization 54% 44% 41% 50% 57% 55% 57% 59% 61% 65% 67% 63% 58% 59% 53% 44% 53% 53% 61% 66% 64%

Expansion 61% 56% 50% 58% 62% 62% 62% 63% 64% 68% 71% 64% 61% 60% 57% 52% 58% 62% 62% 67% 64%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

For your business, over the next 6 months, which are you more concerned about? Inflation or deflation?


Inflation or Deflation

33% 32% 31%36%

30%35%

31% 29%32%

38%

27%23% 23%

25% 23%

14%

23%

11%

28%

33%31%

9% 10% 9%6% 7% 7% 7% 8% 6% 5%

10% 12% 10% 10% 11%

22%

12%

18%

4% 3% 5%

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Inflation Deflation

Which of the following potential inflationary factors represents the most significant risk to your business?


Food costs Energycosts

Raw materialcosts Labor costs Interest

rates Other

2Q16 0% 11% 20% 44% 16% 9%

3Q16 4% 5% 18% 55% 14% 4%

4Q16 1% 10% 20% 43% 23% 4%

1Q17 2% 8% 24% 40% 21% 5%

2Q17 2% 8% 25% 42% 22% 1%

0%

11%

20%

44%

16%

9%

4% 5%

18%14%

4%1%

10%

20%

43%

23%

4%2%

8%

24%

40%

21%

5%2%

8%

25%

42%

22%

1%

Inflationary Risk Factors

55%

Key Performance Indicators


Revenues and Profits Revenue and Profit projections both give back some Q1 gains

Expected revenue increase for coming twelve months declines from 4.3% in Q1 to 3.9% in Q2

Profit projections also decline from 3.5% in Q1 to 3.2%

Hiring and Employment Headcount plans remain constant; costs ease slightly

Anticipated rate of headcount increase for the coming year remained constant at 1.8%

Salary and benefit costs eases a tenth from 2.3% in Q1 to 2.2% in Q2

Healthcare cost projections also to fall another tenth from 5.6% in Q1 to 5.5% in Q2

Spending PlansIT, Other Capital and Training improve; Marketing and R&D ease slightlySpending for IT improves to a 3.2% projected increase in Q2, up from 3.0% in Q1

Other capital spending rate increases from 2.6% to 2.8%

Training also ticks up from to 1.8% to 2.0%

Marketing eases from 1.9% in Q1 to a 1.8% rate in Q2

R&D spending returns to 1.5%, after increasing to 1.7% in Q1

Key Performance IndicatorsExpected Growth in Revenue and Profits Thinking about the

coming 12 months, please comment on the probable change for your organization foreach of the following key performance indicators: please select one growth rate for each item, from increasing by more than 10% to decreasing by more than 10%.…


2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17Revenue 3.1% 2.6% 2.1% 3.0% 3.1% 3.3% 3.6% 3.6% 3.8% 4.4% 4.7% 3.6% 3.2% 3.3% 2.9% 1.7% 3.0% 2.9% 3.6% 4.3% 3.9%Profit 2.6% 2.2% 1.4% 2.1% 2.4% 2.5% 2.7% 2.9% 2.9% 3.6% 3.9% 2.8% 2.4% 2.6% 2.0% 0.7% 1.5% 2.3% 3.1% 3.5% 3.2%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Key Performance IndicatorsEmployees, Salary & Benefits, and Healthcare Costs Thinking about the



2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17Employees 1.1% 0.8% 0.5% 1.1% 1.0% 1.3% 1.2% 1.5% 1.3% 1.8% 2.1% 1.6% 1.5% 1.3% 1.0% 0.5% 1.1% 1.3% 1.6% 1.8% 1.8%Salary & Benefits 2.0% 1.9% 1.9% 2.2% 2.2% 2.3% 2.2% 2.2% 2.1% 2.4% 2.5% 2.0% 2.1% 2.0% 1.8% 1.4% 1.8% 2.1% 2.3% 2.3% 2.2%Healthcare 6.3% 6.4% 6.4% 6.3% 6.7% 6.8% 6.6% 6.2% 5.7% 6.6% 5.9% 5.8% 5.8% 5.8% 5.4% 5.4% 5.7% 5.6% 6.1% 5.6% 5.5%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Key Performance Indicators

Pricing & Other Costs Average Change ExpectedThinking about the coming 12 months, please comment on the probable change for your organization foreach of the following key performance indicators: please select one growth rate for each item, from increasing by more than 80% to decreasing by more than 8%.…


2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17Prices Charged 1.2% 1.2% 1.1% 1.3% 1.1% 1.3% 1.3% 1.3% 1.8% 1.7% 1.7% 1.4% 1.4% 1.6% 1.5% 0.8% 1.3% 1.5% 1.8% 1.9% 1.9%Input Prices 1.9% 1.9% 1.9% 2.0% 1.8% 1.9% 1.8% 1.8% 2.4% 2.3% 2.1% 2.1% 2.0% 2.2% 2.1% 1.5% 2.1% 1.9% 2.4% 2.4% 2.5%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Key Performance IndicatorsSpending Plans - IT, Other Capital & Training Thinking about the



2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17IT 2.8% 2.4% 2.1% 2.7% 2.8% 2.7% 2.9% 3.2% 3.1% 3.3% 3.3% 3.1% 3.1% 3.0% 2.8% 2.3% 2.6% 2.8% 2.9% 3.0% 3.2%Other Capital 2.0% 1.7% 1.3% 1.9% 2.2% 2.2% 2.1% 2.3% 2.4% 2.9% 3.2% 2.4% 2.4% 2.5% 2.4% 1.5% 2.1% 2.4% 2.7% 2.6% 2.8%Training 1.2% 1.0% 0.7% 1.3% 1.3% 1.3% 1.5% 1.7% 1.8% 2.0% 2.2% 1.6% 1.8% 1.4% 1.4% 1.1% 1.3% 1.6% 1.6% 1.8% 2.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Key Performance IndicatorsSpending Plans Marketing & R&D Thinking about the



2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Marketing 1.5% 1.1% 1.0% 1.5% 1.4% 1.5% 1.5% 1.7% 1.6% 1.6% 1.8% 1.6% 1.8% 1.6% 1.6% 1.4% 1.4% 1.4% 1.5% 1.9% 1.8%

R&D 1.0% 0.6% 0.6% 0.9% 1.0% 1.0% 1.0% 1.0% 1.0% 1.2% 1.3% 1.3% 1.2% 1.7% 1.2% 0.9% 1.1% 1.1% 1.5% 1.7% 1.5%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Hiring Plans


50%Have right number of employees

Down slightly from 52% in Q1, 2017

Continue to Improve

8%Have an excess of employees

Unchanged from Q1, 2017; Down from 13% in Q3, 2016

16%Have too few, but hesitating to hire

Consistent with Q1; down a point from Q2, 2016

24%Have too few and planning to hire

Up from 22% in Q1, and up 5% from 19% in Q2, 2016

Hiring PlansOverall staff situation relative to your needs

Given current conditions, how would you characterize your overall staffing situation relative to your needs (i.e., do you have excess capacity or are employees stretched)?


We have anexcess number of

employees

We haveapproximately the

appropriatenumber ofemployees

We have too fewemployees, butare hesitating to

hire

We have too fewemployees andare planning to

hireOther

2Q16 12% 49% 18% 19% 2%3Q16 13% 48% 17% 21% 1%4Q16 9% 55% 15% 20% 1%1Q17 8% 52% 16% 22% 2%2Q17 8% 50% 16% 24% 2%

12%

49%

18% 19%

2%

13%

48%

17%21%

1%

9%

55%

15%

20%

1%

8%

52%

16%

22%

2%

8%

50%

16%

24%

2%

Please indicate the top three challenges for your organization


Top Challenges Facing Organizations

Employee and benefit costs maintained its top spot in the ranking of challenges

Availability of skilled personnel moved up a notch, replacing regulatory requirements which slipped from second to third

Domestic economic conditions and domestic competition maintained their fourth and fifth place positions

Staff turnover jumped from ninth to sixth, while changing customer preferences fell from sixth to tenth

Domestic political leadership dropped two more slots from seventh to ninth

Developing new products/services moved up from the seventh to the sixth slot

Materials/supplies/equipment costs, which returned to the top ten in Q1, moved up two notches to eight


Top Challenges2Q16 3Q16 4Q16 1Q17 2Q17

1 Regulatory requirements/changes

Regulatory requirements/changes


Employee and benefits costs


2 Domestic economic conditions

Domestic economic conditions



Availability of skilled personnel

3 Availability of skilled personnel





4 Domestic competition Domestic competition Availability of skilled personnel



5 Employee and benefits costs

Employee and benefits costs Domestic competition Domestic competition Domestic competition

6 Stagnant/declining markets

Stagnant/declining markets

Developing new products/services/markets

Changing customer preferences Staff Turnover

7 Domestic political leadership

Domestic political leadership



Developing new products/services/markets

8 Developing new products/services/markets Liquidity Changing customer

preferencesDeveloping new

products/services/marketsMaterials/supplies/

equipment costs

9 Liquidity Developing new products/services/markets

Stagnant/declining markets Staff Turnover Domestic political

leadership

10 Energy costs Financing (access/cost of capital) Staff Turnover Materials/supplies/

equipment costsChanging customer

preferences


Industry, Region and Business-size Outlook - 1 of 3

Optimism rebounds for retail

Optimism easesfor both manufacturing and technology

Construction and real estate alsogive up some Q1 gains

Retail trade optimism rebounded to 58% after dropping from 50% to 38% in Q1Wholesale trade however, gave back its significant jump to 79% optimistic in Q1, falling off to 57% in Q2

Hiring for retail continues to be soft, but recovered from <0.3%> in Q1 to 1.1% in Q2

Manufacturing hiring continued to improve from 2.1% in Q1 to 2.3% in Q2

Construction optimism dropped from 74% in Q1to 66% in Q2Real Estate and Property fell from 79% to 63%

Construction hiring also declined from 2.8% in Q1 to 1.7% in Q2Real Estate hiring expectations also softened a point from 1.5% to 1.4%

Manufacturing optimism eases to 66% in Q2 from 74% in Q1 Technology also declines from 69% to 56% optimistic in Q2



Finance and Insurance and Professional Services also settle

Healthcare providers rebound; Healthcare –other declines in optimism

Finance and Insurance optimism declines from 74% in Q1 to 66% in Q2

Professional service optimism also declines from 66% in Q1 to 62% in Q2

Technology hiring improves from 2.0% in Q4 to 2.9% in Q1

Professional service hiring also gives back some Q1 strength, easing from 3.9% in Q1 to 2.9% in Q2

Healthcare providers jumped from 43% in Q1 to 52% in Q2

Healthcare – other dropped from 70% optimistic in Q1 to 60% in Q2

Expected hiring by Healthcare providers eases from 3.3% in Q1 to 2.4% in Q2



Regional optimism shows mixed results

Employment projections by business size and expansion plans by size also show mixed results

South – optimism in South gives back its Q1 gains, falling from 71% to 65%Midwest – maintains its Q1 level of optimism in Q2 at 65%West – optimism declines from 68% in Q1 to 62% in Q2Northeast –improves from 57% to 60% optimistic

For employers with > $1 billion in revenues, 33% have too few employees. However, only 16% of the largest companies with too few employees have plans to hire; 17% are hesitant. Employers with revenues < $10 million are also mixed; while 39% have too few employees, only 19% are planning to hire; 20% are hesitant. In the $10 - $100 million range, 29% of the total of 42% with too few employees have plans to hire; only 13% are hesitant.Of those in the $100 million to $1 billion category, 45% say they have too few employees and 27% are hiring, while 18% are hesitant. While expansion plans for the larger category of SMEs increased from 67% to 73%, expansion plans for the smaller SME companies fell from 72% to 53%


Organization Optimism by Industry 1 of 3

85%

65%

28%39%

50%

33%

50%38%

58%

0%

20%

40%

60%

80%

100%

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Retail Trade

55% 53%

41%48% 48% 47%

55%

71%66%

0%

20%

40%

60%

80%

100%

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Manufacturing

60%67%

52% 53%61%

71% 67% 65%56%

0%

20%

40%

60%

80%

100%

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Technology

65%54%

23%

42%50% 45% 48%

79%

57%

0%

20%

40%

60%

80%

100%

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Wholesale Trade



64% 68%60%

46%

70% 67%

48%

66% 62%

0%

20%

40%

60%

80%

100%

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Professional Service

74%65%

49%41%

58% 57%66%

79%

64%

0%

20%

40%

60%

80%

100%

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Finance & Insurance

65% 69%

48% 52%62% 62%

69%79%

63%

0%

20%

40%

60%

80%

100%

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Real Estate

64% 64%

51%59% 59%

69%75% 74%

66%

0%

20%

40%

60%

80%

100%

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Construction



50%

67%

44%

67% 63%50%

80%70%

60%

0%

20%

40%

60%

80%

100%

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Health Care - Other

47%

69%

38%

52%

69% 68% 69%

43%52%

0%

20%

40%

60%

80%

100%

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Health Care Provider

Expected Employment Change by Industry


Thinking about the coming 12 months, please comment on the probable change for your organization for Number of Employees

1.1

1.4

1.7

1.8

1.9

2.2

2.3

2.3

2.4

2.5

2.9

3.2

-0.3

1.5

2.8

1.2

2.3

2.7

1.8

2.1

3.3

2.0

3.9

2.9

-1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

Retail Trade

Real Estate Property

Construction

Not for Profit

Trans & Distribution

Finance and Insurance

Banking

Manufacturing

Healthcare Provider

Mining

Professional Services

Technology

Q1 Q2

Organization Optimism by Region


Please select the rating that best describes your view for the economic outlook for your own organization for the next 12 months.2Q16 3Q16 4Q16 1Q17 2Q17

South 53% 48% 68% 71% 65%Midwest 53% 53% 62% 65% 65%West 54% 57% 59% 68% 62%Northeast 62% 58% 56% 57% 60%

0%10%20%30%40%50%60%70%80%90%

100%

Expansion Plans by Business Size


Please indicate whether you expect your business to expand or contract over the next 12 months

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17< $10 million 58% 50% 44% 52% 53% 56% 56% 56% 59% 59% 65% 59% 47% 61% 52% 44% 55% 53% 52% 61% 55%$10 to <$100 million 59% 58% 52% 58% 63% 61% 63% 62% 65% 69% 72% 63% 66% 62% 57% 59% 61% 65% 63% 72% 53%$100 million to <$1 billion 66% 56% 53% 63% 63% 64% 62% 71% 65% 73% 72% 67% 65% 60% 57% 50% 61% 59% 67% 67% 73%> $1 billion 62% 54% 53% 68% 68% 68% 64% 69% 66% 71% 75% 77% 53% 56% 59% 49% 50% 66% 62% 66% 69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

53% of all businesses expect to expand a little in the next twelve months 11% expect to expand a lot 35% expect to contract a little or stay the same Only 1% expect to contract a lot

Businesses in the >$1 billion range are most likely to have excess employees


Given current conditions, how would you characterize your overall staffing situation relative to your needs (i.e., do you have excess capacity or are employees stretched)?

We have an excessnumber ofemployees

We haveapproximately the

appropriate numberof employees

We have too fewemployees, but arehesitating to hire

We have too fewemployees and are

planning to hireOther

< $10 million 9% 50% 20% 19% 2%$10 to <$100 million 7% 49% 13% 29% 3%$100 million to <$1 billion 7% 47% 18% 27% 1%> $1 billion 11% 54% 17% 16% 1%

9%

50%

20% 19%

2%

7%

49%

13%

29%

3%7%

47%

18%

27%

1%

11%

54%

17% 16%

1%

AICPA Economic Outlook Survey

Survey Within a Survey

Corporate Tax Reform

Tax Reform - Timing

2Q 2017 Economic Outlook Survey Within A Survey

Do you expect the administration’s proposal to lower federal corporate income taxes to 15% will be enacted this year?

Federal Corporate Income Taxes

7%

16%

33%

44%

0% 10% 20% 30% 40% 50%

Not sure

Yes

Eventually, but not until at least2018 before mid-term elections

No

2Q 2017

Tax Reform – Bottom Line Impact


What impact would a potential reduction in the federal corporate income tax rate to the 15% to 20% range have on your company’s bottom line?


1%

3%

15%

21%

24%

36%

2%

4%

15%

18%

18%

43%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Negative impact

Not sure

Slightly positive

Moderately positive

Significantly positive

Not a factor

1Q 20172Q 2017

Tax Reform – Savings Deployment


If federal corporate income taxes are reduced, what are the likeliest ways your company would deploy the tax savings? If federal corporate income taxes are reduced, what are the likeliest ways your company would deploy the tax savings?


3%

4%

12%

16%

18%

25%

28%

46%

3%

6%

11%

17%

17%

27%

31%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Hire more part-time workers

Buy back stock

Acquire or merge with anothercompany

Issue or increase dividend

Hire more full-time workers

Pay down debt

Other (please specify)

Increase capital expenditures andbusiness expansion spending

1Q 20172Q 2017

Tax Reform – Company Prospects


How much would enactment of tax reform shape your view of your own company’s prospects?


1%

2%

16%

36%

45%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

It would make me substantially morenegative

It would make me more slightly morenegative

It would make me more substantially morepositive

It would make me slightly more positive

It would not change my outlook

Tax Reform – Economic Outlook


If tax reform fails to be implemented before the 2018 mid-term elections, what impact do you expect that will have on your outlook for the U.S. economy?


3%

6%

10%

39%

42%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

I would have a substantially morepositive outlook

It would make me slightly more positive

I would have a substantially morenegative outlook

I'd have a slightly more negative outlook

I'd have a neutral outlook


Applyaccountingand financeskills...

in the context of the business...

Demographics

Applyaccountingand financeskills...

in the context of the business...

20%

34%11%

12%

8%

4%11%

Size of Organization

$0 to under $10 million

$10 million to under $50 million




$500 million to under $1 billion

$1 billion or more

14%

71%

1%14%

0%

Type of Organization

Publicly Listed Company

Privately Owned Entity

Government

Not for Profit

Other

10% 2%

8%

47%0%

22%

5%

2% 4%

Position

CEO/PresidentCOOVP/SVPCFOCAO/CAECIOControllerDirectorAccounting, Audit, Tax or Technology ManagerOther

AICPA Business and IndustryEconomic Outlook Survey 2Q 2017

For additional information contact:

Kenneth W. Witt, CPA, CGMALead Technical Manager Management [email protected]

Cary JonesAssociate Manager

Business, Industry & Government Team [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

AICPA Business and Industry Economic Outlook Survey€¦ · 2Q 2017 Economic Outlook Survey Survey Background • Conducted between May 2-17, 2017 • Quarterly Survey • CPA decision