AICPA Business and Industry Economic Outlook Survey...4 1Q 2020 Economic Outlook Survey. The CPA Outlook Index is the composite of the following nine indicators at equal weights: •

AICPA Business and Industry Economic Outlook SurveyDetailed Survey Results: 1Q 2020Management Accounting & Finance

Survey Background• Conducted between February 4 - 26, 2020• Quarterly survey• CPA decision makers

– primarily CFO’s, CEOs and Controllers

• AICPA members in Business & Industry• 867 qualified responses

1Q 2020 Economic Outlook Survey

Note: Market decline due to Coronavirus concerns began near the end of the time that this survey

was in the field. Additional charts breaking down the responses accordingly have been added.

Survey Highlights

3 1Q 2020 Economic Outlook Survey

Overall Index recovers to Q1 2019 level of 76 US Economy component recovers from 64 to 74 All components up including US Economic and Organization Optimism Expansion plans, revenue and profit expectations all show gains

CPAOI

Early February optimism about Global and US Economy show gains; late month responses reflect significant declines in wake of spread of coronavirus and related impact on markets Early response show 11% increase in optimism about US Economy Similar improvements seen in optimism about own organization and expansion plans End-of-month responses show declines in global, US and organization optimism

Economy and

Organization

Expansion plans rebound to 64% overall; small company plans jump from 52% to 62%Employment plans also improve for most sectors, especially for smaller companies Global economic conditions and materials, supplies and equipment costs returned to the top ten challenges at 9 and 10, respectively.

Expansion Employment Challenges

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

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.



A reading above 50 indicates a generally positive outlook with increasing activity.

A reading below 50 indicates a generally negative outlook with decreasing activity. 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

CPA OutlookIndex 74 72 71 69 63 68 69 74 76 75 77 79 81 79 79 76 76 75 72 72 76

74 72 71 6963

68 6974 76 75 77 79 81 79 79

76 76 7572 72

76

6



Component 1Q19 2Q19 3Q19 4Q19 1Q20 ∆Q to Q ∆Y to YU.S. Economic Optimism 72 70 60 64 74 10 02Organization Optimism 77 75 72 73 78 05 01Expansion Plans 76 75 72 71 75 04 01Revenue 82 81 76 76 81 05 01Profits 75 72 70 71 73 02 02Employment 71 71 68 70 71 01 00IT Spending 80 80 80 80 81 01 01Other Capital Spending 74 74 74 71 74 03 00Training & Development 75 73 72 72 73 01 02Total CPAOI 76 75 72 72 76 04 00

7

CPA Outlook Index (CPAOI) vs. GDP

4Q18 1Q19 2Q19 3Q19 4Q19 1Q20CPA Outlook

Index 76 76 75 72 72 72

Changein GDP 3.1% 3.1% 2.0% 2.1% 2.1%

-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

2.1%


U.S. Economy, Organization and Inflation

8

Optimism for U.S. economy rebounds 11 points

Optimists cite strong employment, low inflation, economic, real estate and equity market strength.

Pessimists cite length of recovery, ongoing political divisiveness, and concern about potential effect of election.

Coronavirus concerns also cited, with particular impact at end of month – see specified charts.

Organization optimism also rebounds up from 58%

Expansion plans also rebound to 64% overall. Small company expansion plans up from 52% to 62% quarter over quarter.

The percentage of companies expecting their businesses to contract eased from 17% to 14%.

Concern about inflation dropped to 17%; concern about deflation dropped to 7%

Concern about labor costs continues to be most significant at 46%.

Raw materials cost concerns remained constant at 26%.

Interest rate concerns eased from 13% to 12%.

Energy cost concerns as most significant risk now at 6%.

61% 66% 17%


9

Optimism & Expansion

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

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20U.S. 69% 64% 64% 74% 79% 74% 69% 57% 57% 57% 42% 50% 61%

Organization 66% 64% 66% 70% 71% 70% 69% 68% 65% 62% 58% 58% 66%

Expansion 67% 64% 65% 71% 72% 70% 70% 67% 66% 63% 61% 59% 64%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Global Optimism – Coronavirus Impact Market decline due to Coronavirus concerns began near the end of the time that this survey was in the field.

This chart provides a breakdown between the early respondents to the survey and those who responded to the final reminder on February 25 regarding their optimism about the global economy.


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

TOTAL EARLY RESPONSES LATE RESPONSES

33%35%

24%

45% 46%

40%

22%18%

36%

Optimistic Neutral Pessimistic

US Optimism – Coronavirus Impact Market decline due to Coronavirus concerns began near the end of the time that this survey was in the field.

This chart provides a breakdown between the early respondents to the survey and those who responded to the final reminder on February 25 regarding their optimism about the global economy.


0%

10%

20%

30%

40%

50%

60%

70%

TOTAL EARLY RESPONSES LATE RESPONSES

61% 63%

53%

26% 26% 26%

13% 11%

21%


Organization Optimism – Coronavirus Impact Market decline due to Coronavirus concerns began near the end of the time that this survey was in the field.

This chart provides a breakdown between the early respondents to the survey and those who responded to the final reminder on February 25 regarding their optimism about the prospects for their own organization.


0%

10%

20%

30%

40%

50%

60%

70%

TOTAL EARLY RESPONSES

LATE RESPONSES

66% 68%

57%

23% 22%

33%

10% 11% 10%



Inflation or Deflation?

For your business, over the next 6 months, which are you more concerned about? Inflation or deflation?33% 31% 26% 27%

49%47% 47% 49%

34%

29%23%

19% 17%

3% 5% 5% 5% 3% 2% 2% 2%6%

5%11%

8%7%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q200%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Inflation Deflation


Inflationary Risk Factors

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

1Q19 2% 7% 28% 38% 20% 5%2Q19 3% 7% 29% 39% 18% 5%3Q19 2% 5% 32% 37% 20% 4%4Q19 3% 5% 26% 47% 13% 7%1Q20 1% 6% 26% 46% 12% 9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Key Performance Indicator Summary

15

Revenues and Profits Revenue and profit projections both jump

Expected revenue for coming twelve months increased from 3.4% in Q4 to 4.3%

Profit projections rebounded from 2.7% in Q4 to 3.3% in Q1

Hiring and Employment Headcount plans rebound; cost projections hold

Anticipated rate of headcount increase eased from 1.6% to 2.0%

Salary and benefit expected cost gains one tenth to 2.6%

Healthcare cost projections decreased a tenth from an expected rate of increase of 5.2% to 5.1%

Spending PlansSpending plans reboundExpected rate for IT spending gains from 3.5% to 3.6%

Other capital spending recovered four tenths from 2.5% to 2.9%

Expected rate of increase for training also recovers two tenths, improving to 2.1%

Marketing spending plans give back two tenths, easing from 2.0% to 1.8%

R&D spending remains constant at 1.7%



Key Performance Indicators

Thinking about the coming 12 months, please comment on the probable change for your organization foreach of the following key performance indicators

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20Revenue 1.7% 3.0% 2.9% 3.6% 4.3% 3.9% 4.3% 4.8% 5.0% 4.8% 5.0% 4.3% 4.4% 4.2% 3.5% 3.4% 4.3%Profit 0.7% 1.5% 2.3% 3.1% 3.5% 3.2% 3.5% 3.8% 4.4% 4.0% 4.3% 3.4% 3.6% 3.1% 2.8% 2.7% 3.3%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Expected Growth in Revenue and Profits




1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20Employees 0.5% 1.1% 1.3% 1.6% 1.8% 1.8% 1.9% 1.8% 2.1% 2.1% 2.3% 2.0% 1.9% 1.9% 1.7% 1.6% 2.0%Salary &Benefits 1.4% 1.8% 2.1% 2.3% 2.3% 2.2% 2.4% 2.5% 2.7% 2.8% 2.8% 2.6% 2.6% 2.7% 2.4% 2.5% 2.6%

Healthcare 5.4% 5.7% 5.6% 6.1% 5.6% 5.5% 6.3% 5.9% 5.6% 5.9% 5.7% 5.3% 5.2% 5.1% 5.1% 5.2% 5.1%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Employees, Salary & Benefits, and Healthcare Costs




Pricing & Other Costs Average Change Expected

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20Prices Charged 0.8% 1.3% 1.5% 1.8% 1.9% 1.9% 1.9% 2.1% 2.1% 2.5% 2.5% 2.2% 2.1% 2.2% 1.9% 1.8% 2.0%Input Prices 1.5% 2.1% 1.9% 2.4% 2.4% 2.5% 2.4% 2.5% 2.7% 3.2% 3.2% 3.0% 2.6% 2.6% 2.4% 2.3% 2.3%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%




Spending Plans - IT, Other Capital & Training

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20IT 2.3% 2.6% 2.8% 2.9% 3.0% 3.2% 3.5% 3.6% 3.7% 3.7% 3.6% 3.3% 3.5% 3.4% 3.4% 3.5% 3.6%Other Capital 1.5% 2.1% 2.4% 2.7% 2.6% 2.8% 3.3% 3.1% 3.9% 3.6% 3.5% 3.0% 2.9% 3.0% 3.0% 2.5% 2.9%Training 1.1% 1.3% 1.6% 1.6% 1.8% 2.0% 2.1% 2.2% 2.4% 2.4% 2.3% 2.0% 2.3% 2.1% 1.9% 1.9% 2.1%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%




Spending Plans Marketing & R&D

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Marketing 1.4% 1.4% 1.4% 1.5% 1.9% 1.8% 1.8% 2.0% 2.1% 1.9% 1.9% 1.9% 2.0% 1.6% 1.6% 2.0% 1.8%

R&D 0.9% 1.1% 1.1% 1.5% 1.7% 1.5% 2.0% 2.0% 2.0% 2.2% 2.0% 1.7% 1.9% 1.5% 1.4% 1.7% 1.7%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Hiring Plans

21

Have right number of employees

Up 5 points from Q4, back to Q3 level

Have an excess of employees

Down 1 point from Q4

Have too few, but hesitating to hire

Down 1 point from Q4

Have too few and planning to hire

Down 2 points from Q4

14%51% 7% 26%

Remain relatively strong



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 an excessnumber ofemployees

We haveapproximately the

appropriate numberof employees

We have too fewemployees, but are

hesitating to hire

We have too fewemployees and are

planning to hireOther

1Q19 8% 48% 15% 26% 2%2Q19 6% 47% 16% 28% 3%3Q19 9% 51% 13% 25% 2%4Q19 8% 46% 15% 28% 3%1Q20 7% 51% 14% 26% 2%

0%

10%

20%

30%

40%

50%

60%


Challenges Facing Organizations

Indication of the top three challenges for your organization

Availability of skilled personnel continues as the top challenge Domestic competition moves up 1 spot to #2 Domestic economic conditions drops to #3 Domestic political leadership jumps 2 spots to #4 Regulatory requirements maintains #5 spot Employee and benefit costs drops 2 spots to #6 Developing new products and services moves up 1 spot to #7 Staff turnover drops 1 spot to 8th place Global economic conditions comes in at #9, returning from 7th in

4Q2015 Materials/supplies/equipment costs returns to the 10th position after

falling off in 2Q2019

10Top

Challenges YTD


10Top

1Q19 2Q19 3Q19 4Q19 1Q20

1 Availability of skilled personnel

Availability of skilled personnel




2 Domestic competition Employee and benefits costs Domestic economic conditions

Domestic economic conditions Domestic competition

3 Employee and benefits costs Domestic competition Domestic political leadership Domestic competition Domestic economic conditions

4 Regulatory requirements/changes

Regulatory requirements/changes Domestic competition Employee and benefits costs Domestic political leadership

5 Domestic political leadership Staff Turnover Employee and benefits costs Regulatory requirements/changes

Regulatory requirements/changes

6 Domestic economic conditions

Domestic economic conditions

Regulatory requirements/changes Domestic political leadership Employee and benefits costs

7 Materials/supplies/ equipment costs

Materials/supplies/ equipment costs Staff Turnover Staff Turnover Developing new

products/services/markets

8 Changing customer preferences Domestic political leadership Stagnant/declining markets Developing new

products/services/markets Staff Turnover

9 Staff Turnover Developing new products/services/markets

Developing new products/services/markets Stagnant/declining markets Global economic conditions

10 Financing (access/cost of capital)

Changing customer preferences



Materials/supplies/ equipment costs

Industry, Region and Business-size Outlook

25

Retail trade declines further; wholesale trade improves

Manufacturing rebounds; Technology rebounds

Construction rebounds; Real Estate eases

Retail trade drops further from 63% to 57% optimistic Wholesale trade improves from 58% to 68% optimistic

Hiring for retail is expected to increaseat a rate of 1.7% for the coming twelve months, vs. 1.6% in Q4

Manufacturing hiring plans also rebounded from only 0.8% in Q3 and 1.0% in Q4 to now a 2.9% expected increaseTechnology hiring eased another seven three tenths from 2.1% to 1.4%

Construction optimism rebounded from 66% to now 83% optimisticReal Estate and Property held its Q4 gains, easing only a point to now 68% optimistic

Construction hiring plans eased from 2.3% in Q4 to 2.0% going forward from Q1. Real Estate hiring expectations jumped dramatically from 1.8% to 3.8%.

Manufacturing optimism recovers from 55% to 59% optimistic Technology rebounds to 76% optimistic after falling to below 50% in Q4


Industry, Region and Business-size Outlook

26

Finance & Insurance eases slightly; Professional Services rebounds

Healthcare providers drop; Healthcare –others improves

Finance and Insurance optimism held its gains, easing only a point to now 74% optimistic Professional Services rebounded from 61% in Q4 to 68% optimistic in Q1

However, finance and insurance hiring is now expected to increase at only a 0.9% rate Professional services hiring also eased, now expected to increase at a rate of only 2.1% going forward from Q1

Healthcare provider gave back its Q4 gains declining from 67% to only 54% optimistic in Q1 Healthcare–other also continued its rebound, jumping from 60% to 71% optimistic

Expected hiring by Healthcare providers, which topped the list in Q3 and Q4, now expects hiring to increase at a rate of 1.9% looking forward from Q1


Organization Optimism by Industry

27

66%61% 61%

69%

56%

40%

54%63%

57%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Retail Trade

77% 75% 78%

67%57% 57%

51% 55% 59%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Manufacturing

80%

69%60%

82%

65%70%

75%

48%

68%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Technology

72% 76%

63% 63%

89%

75%

52%58%

68%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Wholesale Trade



28

76% 78%

66%75%

64% 67%

52%

69% 68%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Real Estate & Property

77% 76%69% 69%

74%83%

76%66%

83%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Construction

78% 82% 84%79%

65% 61%67%

61%68%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Professional Service

79%69%

78%72% 74% 77%

67%75% 74%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Finance & Insurance



29

76%

88%

67% 65%56% 57%

42%

60%

71%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Health Care - Other

61%

44%

61% 60%51%

63%58%

67%

54%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Health Care Provider



Expected Employment Change by IndustryThinking about the coming 12 months, please comment on the probable change for your organization for Number of Employees

1.9

2.0

2.9

2.1

1.6

1.0

3.0

2.3

2.7

1.0

1.8

0.3

0.6

0.9

1.4

1.7

1.8

1.9

2.0

2.1

2.9

3.8

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Banking

Not for Profit

Finance and Insurance

Technology

Retail Trade

Trans & Distribution

Healthcare Provider

Construction

Professional Services

Manufacturing

Real Estate Property

Q1 Q4


Industry, Region and Business-size OutlookMidwest – optimism gained another 9% from Q4 to 67%West – optimism gained 4 points to 67%South – gained 7 points increasing to 68%Northeast – recovered 6 points increasing from 55% to 61% optimistic

For employers with > $1 billion in revenues, 8% now have excess employees, while 38% have too few. Of those with too few employees, 20% remain hesitant while 18% are planning to hire. Of those in the $100 million to $1 billion category, 39% say they have too few employees; 28% are hiring; while 11% are hesitant. In the $10 - $100 million range, 42% now have too few employees; of those with too few, 31% have plans to hire; only 11% are hesitantOf employers with revenues < $10 million 40% have too few employees, consistent with Q4; 23% are planning to hire; 17% are hesitant. Expectations for expansion by businesses with revenues < $10 million jumped 10 points to 62%. Plans for companies in the $10 - $100 million category improved 5 points to 64%. Companies in the $100 million to $1 billion range gained 3 points to 65%; those with revenues in excess of $1 billion gave back the 5 points gained in Q4, returning to 63% having plans to expand.

Regional optimism shows improvement across regions

Employment projections by business size and expansion plans by size also reflecting level of optimism


Organization Optimism by Region

The rating that best describes your view for the economic outlook for your own organization for the next 12 months.

1Q19 2Q19 3Q19 4Q19 1Q20Midwest 64% 60% 54% 58% 67%West 74% 61% 60% 63% 67%South 67% 72% 61% 61% 68%Northeast 50% 53% 59% 55% 61%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Expansion Plans by Business Size

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

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20< $10 million 67% 62% 63% 64% 60% 63% 62% 52% 62%$10 to <$100 million 74% 69% 70% 70% 67% 66% 64% 59% 64%$100 million to <$1 billion 72% 71% 73% 62% 67% 63% 54% 62% 65%> $1 billion 76% 78% 74% 71% 66% 64% 63% 68% 63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

49% of all businesses expect to expand a little in the next twelve months 16% expect to expand a lot 33% expect to contract a little or stay the same 2% expect to contract a lot


Business hiring plans by company size

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

hire

Other

< $10 million 6% 51% 17% 23% 2%$10 to <$100 million 6% 50% 11% 31% 2%$100 million to <$1 billion 8% 51% 11% 28% 2%> $1 billion 8% 52% 20% 18% 2%

0%

10%

20%

30%

40%

50%

60%

Demographics

35

21%

30%

13%

10%

6%

5%

14%

Size of Organization

$0 to under $10 million$10 million to under $50 million$50 million to under $100 million$100 million to under $250 million$250 million to under $500 million$500 million to under $1 billion$1 billion or more

68%

16%

15%

1% 1%

Type of Organization

Privately Owned EntityNot for ProfitPublicly Listed CompanyOtherGovernment

43%

19%

9%

9%

7%

5%3%

2% 2%

Position

CFOController/ComptrollerVice-President/SVPDirector/Managing DirectorPresidentCEO/COOAccounting, Audit, Tax or Technology ManagerChief Officers (CAO/CIO/CTO/CRO/KMO)Other (please specify)


AICPA Economic Outlook Survey

Survey within a Survey

Coronavirus (COVID-19)

Coronavirus business impact – all responses compared to late-month responses

Has your business been affected by the outbreak of the coronavirus, the deadly flu-like virus that's caused a public health crisis in China?


55%

5%

0%

1%

1%

25%

12%

1%

73%

4%

0%

0%

1%

17%

4%

1%

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

No impact

Not sure

Significant positive impact

Moderate positive impact

Slight positive impact

Slight negative impact

Moderate negative impact

Significant negative impact

All Responses Late Responses

Coronavirus and your business



What aspects of your business have been affected?

3%

5%

7%

7%

10%

68%

0% 20% 40% 60% 80%

Decreased sales to other markets as aresult of coronavirus-related

disruptions.

Decreased sales to China markets.

Operations of our Chinese facilities shutdown or restricted.

Other (please comment)

Supply chain partner facilities shutdown or restricted.

NA / Not impacted


Other Reasons (Text)Decline of imports from China

Market volatility (Investments)

Restricted travel/disruptions

General economic decrease

Less demand for oil

Increased health awareness

Potential US domestic exposure

Employee distraction


Coronavirus and your businessWhat aspects of your business have been affected?

What other adjustments have you made in response to the impact of the coronavirus?


Coronavirus and your business

0%

4%

4%

14%

78%

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

Shifting manufacturing to otherfacilities.

Other (please comment)

Shifting sourcing to other supplychain partners.

Travel restrictions on employees toChina or other impacted regions.

NA / Not impacted

What other adjustments have you made in response to the impact of the coronavirus?

Other Adjustments (Text)Adjusted production runs

Marketing plans changed

More local sales leads

Investment value reduced

Adding quarantine requirements for staff

Reducing travel overall, more web meetings

Preparing for possible outbreak and monitoring


Coronavirus adjustments - other

Some economists are predicting a downward impact on the global economy because of the coronavirus -have you adjusted your profit and sales outlook because of the potential pandemic?


Coronavirus – business forecast adjustments - all responses compared to late-month responses

25%

62%

11%

2%

42%

51%

7%

1%

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

No, and don't expect we'll need to.

No, but keeping an eye on situation.

Yes, but currently only minor downwardadjustments.

Yes, we have made significant downwardadjustments.

All Responses Late Month Respnses

AICPA Business and IndustryEconomic Outlook Survey 1Q 2020

For additional information contact:Kenneth W. Witt, CPA, CGMASenior Manager Management [email protected]

Cary JonesAssociate ManagerManagement [email protected]

Thank you!

Documents

AICPA Business and Industry Economic Outlook Survey...4 1Q 2020 Economic Outlook Survey. The CPA Outlook Index is the composite of the following nine indicators at equal weights: •