The New Jersey Society of Certified Public Accountants (NJCPA) shared the results of a new survey this week that finds most CPAs are divided over whether the state’s economy will remain the same or worsen for the rest of 2023.

Conducted in July, the poll of 434 certified public accountants showed 44% expect the Garden State’s economy to stay about the same during the second half of the year, while another 44% believe it will worsen. Just 12% thought it would improve.

While the responses were split, they did show increased optimism versus last year’s results. In 2022, the survey found nearly 65% of CPAs expected the economy to worsen while 28% expected it to the same and only 7% thought it would improve.

The survey also took a look at feelings about the national economy; the fiscal health of New Jersey’s state government; the cost of doing business in the Garden State; industry challenges; and more.

Some topline findings include:

• The biggest challenges facing respondents were inflation – 66% in 2023 versus 73% last year – and the ability to find skilled workers – 53% this year, similar to last year’s 57%.
• Following those hurdles were unfriendliness of the state and federal policies toward businesses (40%) and rising interest rates (39%).
• Respondents were more positive about the national economy with a higher majority (47% this year versus 23% in 2022) feeling the U.S. economy would stay the same during the second half of the year; 37% said it would worsen, versus 69% last year.
• As for helpful steps the government could take to improve business conditions, the majority of respondents pointed to inflation-easing measures (73%) and reducing burdensome regulations (66%).
• Respondents also recommended addressing small business needs, lessening the tax burdens of individuals, cutting government spending, reducing the pension burden, and incentivizing people to work.

“Surveys like this one are a good way to gauge sentiment in all facets of society,” said Roosevelt Bowman, a senior investment strategist with Bernstein Private Wealth Management, which sponsored the survey. “It’s not surprising that inflation was more of a concern last year.”

“As strategic advisors to their clients and organizations, CPAs are good sounding boards about the business environment,” said Aiysha (AJ) Johnson, CEO and executive director of the NJCPA, who was No. 1 in the recent NJBIZ Accounting Power 50. “Our members always have a great read on what’s important for growth and sustaining business operations.”

In June, NJBIZ recapped the NJCPA’s 2023 Convention & Expo in Atlantic City, which had a theme of “Breaking Through.”

Power 50

With NJCPA CEO Aiysha (AJ) Johnson at the top, click here to find out who else made the 2023 NJBIZ Accounting Power 50.