
Survey: Recession fears, trade uncertainty fuel economic pessimism
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Optimism is falling and pessimism is rising among businesses getting a read on the U.S. economy, according to a new national survey.
The findings are from the Center for Audit Quality, which gathered feedback from the nation's leading public company audit firms. The firms serve clients in a wide range of industries, from retail to mining. The spring survey showed pessimism about the U.S. economy surged to 44 percent, compared to just 10 percent last fall. Meanwhile, optimism fell to 15 percent.

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Julie Bell Lindsay, CEO of the center, said there are a handful of key factors behind the sentiments.
"Concern about a recession, ongoing geopolitical instability, and tariff uncertainty," Lindsay outlined. "Those are the top three areas where audit partners are seeing companies concerned over the next 12 months."
The Trump administration said it remains undeterred in applying broad-based tariffs in pursuit of fair trade. Financial analysts said the approach creates less predictability for businesses with the potential for layoffs, adding some of the tariff polices have resulted in legal setbacks. White House officials hope tariffs lead to more domestic manufacturing but experts cautioned it could take years.
Among respondents, 54 percent said companies in their sectors are reducing employee headcounts in the current economic landscape but nearly half also are making an effort to boost the skills of existing staff. Lindsay added artificial intelligence has major appeal right now.
"The companies in the industries that they audit are mainly pursuing the use of AI to enhance customer experiences, services and support, as well as automate some work processes," Lindsay explained.
Despite the Trump administration's interest in cryptocurrency, survey results show American companies feel the situation is not right yet to jump into those markets. Of those surveyed, 96 percent said their clients are not having talks right now about such investments.