UK accountant confidence rises from record low, but caution persists
UK accountant confidence rises from record low, but caution persists
Confidence among UK accountants has edged up in the first quarter of 2025, following a historic low at the end of last year, according to the latest Global Economic Conditions Survey (GECS) from the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA).
While the uptick marks a shift in sentiment—particularly among small and medium-sized enterprises—it remains well below historical averages and comes alongside continued signs of stress in core business indicators.
The survey, which has tracked global and regional sentiment since 2011, reported a mixed picture across the UK. New orders increased for a second consecutive quarter, and the Employment Index posted a “decent improvement.”
Yet capital expenditure declined modestly and remains at historically low levels.
Cashflow Concerns Grow
Though concerns over customers and suppliers going out of business have declined, accountants flagged rising pressures elsewhere.
Reports of increased operating costs reached their highest point since Q1 2023, while problems securing prompt payment and accessing finance both rose for the second quarter in a row.
“These issues risk further straining business cashflow and overall financial viability,” the report notes.
Jonathan Ashworth, Chief Economist at ACCA, cautioned that prolonged weakness in sentiment could have broader repercussions.
“Global growth has generally proved quite resilient over recent quarters. Nonetheless, the longer that confidence remains depressed, the greater the risk that a self-reinforcing negative cycle could potentially develop, with firms pulling back on orders, capital expenditure and hiring,” he said.
Ashworth added that worsening global trade tensions since the survey’s completion have heightened downside risks.
Confidence Dips Globally, Plummets in US
While UK sentiment showed signs of recovery, global confidence among accountants remained weak in early 2025.
The GECS data show that confidence is at its lowest point since Q2 2020, with North America experiencing the sharpest decline.
Confidence among US-based accountants fell to its second-lowest level on record.
Respondents cited trade policy uncertainty and recent government spending cuts as major contributors.
In contrast, confidence in Asia Pacific and Western Europe improved, rebounding from previous sharp drops.
However, cost pressures remain elevated in Western Europe and have risen notably in North America.
Economic and Operational Risks in Focus
The GECS report identifies the economy as the top risk across all sectors, though concerns vary.
Cybersecurity ranked highest among financial services respondents and tied with talent scarcity in the public and not-for-profit sectors.
In the corporate sector, economic conditions were the leading risk, followed closely by geopolitical instability.
Glenn Collins, Head of Technical and Strategic Engagement at ACCA UK, urged policy action to match the scale of the challenge.
“With business confidence so low and all the talk of government strategies, now is the time for action. The lack of final published strategies has a negative impact on businesses, who look to those plans to prioritise investment and grow,” he said.
“While the global market flux provides a challenging environment, it also provides opportunities for business to expand into new markets—and a lack of positive forward momentum is holding us back.”
Alain Mulder, Senior Director at IMA, echoed concerns around external volatility, noting that recent US trade and spending policies have had “a large negative impact on confidence.”
Looking Ahead
The data offer early signs of recovery but underscore a fragile outlook for UK accountants and the businesses they support.
With key indicators under pressure and global uncertainty on the rise, a sustained improvement in confidence may depend less on sentiment and more on decisive policy clarity—both at home and abroad.
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