The Global Economic Conditions Survey from the Association of Chartered Certified Accountants and Institute of Management Accountants has shown a small decline in confidence among accountants globally in the third quarter.

Confidence improved somewhat among chief financial officers but caution appears to remain the order of the day. Other key indicators remain consistent with a resilient global economy, a joint statement has concluded.

Jonathan Ashworth, chief economist of ACCA, said: “While the global economy has shown remarkable resilience this year, downside risks remain prevalent. The longer energy and other prices remain elevated, the greater the pressure on firms to pass on their cost increases, which would weigh on consumers and increase the likelihood of further rate hikes by the major central banks.”

Mr Ashworth added: “Growth in the US and global economies continues to benefit significantly from the AI [artificial intelligence] boom. Anything that fuelled a meaningful slowing in that over coming quarters, would clearly be problematic.”

Paula Marcelle-Irish, head of ACCA Caribbean, said: “Across the Caribbean, businesses continue to navigate uncertainty and ongoing cost pressures, yet organisations across the region have demonstrated remarkable resilience and adaptability.

“In this environment, finance professionals play a critical role in supporting sound decision-making, managing risk and helping businesses identify opportunities for sustainable growth.”

Meanwhile, the Global New Orders Index improved and is just above its historical average and broadly similar to other readings since the aftermath of Russia’s invasion of Ukraine. There were also small gains in the Global Capital Expenditure and Employment indices, although both remain below series averages.

The AI boom continues to provide major support to global growth and stock markets, the joint statement said.

The organisations commented: “Downside risks are growing though, amid the renewed rise in energy prices and inflation in recent months, large increases in government bond yields and tighter monetary policy.

“Cost pressures remain a major challenge for firms. Almost 70 per cent of surveyed accountants globally reported increased operating costs in Q3, down from Q2, but well above the series average.

“Some 82 per cent of CFOs experienced higher costs, barely lower than in Q2. Meanwhile, almost 50 per cent of respondents expect interest rates to rise in their country over the next three months, up from 42 per cent in Q2.

“Among the major economic regions, confidence rose quite strongly in North America in Q3, driven by a marked rise in the US, where the key indicators point to a strengthening economy.

“Western Europe saw some improvement as well. By contrast, there was quite a large fall in confidence in Asia Pacific following a huge increase in Q2, although there was another increase in the forward-looking New Orders Index, which is close to the series high. The region’s exporters are key beneficiaries of booming global AI-related investment.”

Economic pressures remained accountants’ top risk priority in Q3 (24 per cent), followed by geopolitical instability (18 per cent), and then regulatory/compliance risks and cybersecurity (about 13 per cent).

Some accountants are tracing how disruption works its way through customers, suppliers, technology and finance before it affects a service, margin or a decision.

Alain Mulder, senior director, Europe operations and global special projects at IMA, said: “There is something of a tug of war going on in the global economy at the present time, with the AI boom a major driver of growth and stock markets, while higher energy prices, inflation and government bond yields are pulling in the other direction. Further significant gains in energy prices and government borrowing costs would be increasingly challenging for global growth”.

The ACCA has over 257,900 members in 180 countries. The IMA is also a global association, with 150 members in accounting, finance, and business strategy.