Nearly 65% ​​of CPAs surveyed say New Jersey’s economy will deteriorate for the rest of the year

Nearly 65% ​​of CPAs surveyed say New Jersey’s economy will deteriorate for the rest of the year

Inflation and the search for available staff are the main concerns of companies

ROSELAND, NJ — New Jersey’s economy is expected to deteriorate in the second half of the year, according to nearly 65% ​​of 441 certified public accountants surveyed by the New Jersey Society of CPAs (NJCPA) in May. An even higher percentage of respondents — 68% — thought economic conditions in the United States would worsen over the rest of the year.

The biggest challenge for respondents’ businesses was inflation (73%). Other challenges cited were the availability of qualified staff (57%); anti-business state and tax policies (42%); supply chain issues (35%); and regulatory requirements (27%).

Of nearly 240 respondents who work in public accounting, the majority (69%) said they had advised an individual client to consider leaving the state due to the high cost of living in New Jersey, while 54 % advised a business client to consider relocating. Those who commented noted that taxes combined with the higher cost of living were factors. “About 20 years ago I got a CPA license in Florida due to migration heading south. It gave my clients comfort to know I had it,” one respondent added.

Over the next 12 months, the majority of respondents said the most helpful government measures for businesses would be measures to fight inflation (74%); reducing burdensome regulations (65%); and maintaining a low corporate tax rate (51%). As one respondent noted, “The government must make the fight against inflation its top priority. Otherwise, we will be back to years of stagflation.

Compared to a survey conducted at this time last year on the economic outlook, this year’s respondents were decidedly more negative. Last year, more than 40% of respondents said they thought economic conditions in the United States would improve and 35% thought New Jersey’s economy would improve. This year, those numbers were only 9 and 7 percent, respectively.

More than 40% of respondents considered New Jersey’s financial health to be fair and 39% to be poor.

“CPAs tirelessly serve businesses and individuals throughout the state. Surveys like this give an excellent indication of what the business community thinks of the current environment for doing business and the potential for improvement,” said Ralph Albert Thomas, CPA (DC), CGMA, CEO and executive director of the NJCPA.

The survey, sponsored by Investors Bank, a division of Citizens Bank, NA, was conducted to gauge CPAs’ outlook on the national and New Jersey economies.

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Survey charts attached

The Society of Chartered Public Accountants of New Jersey, with more than 14,000 members, represents the interests of the accounting profession and advances the financial well-being of New Jerseyans. The NJCPA plays a leadership role in supporting the profession by providing its members with educational resources, access to shared knowledge, and an ongoing effort to create and expand professional opportunities. Visit njcpa.org.

Investor Bank, a division of Citizens Bank, NA, is a full-service bank serving its customers since 1926. Investors offers personalized services and products tailored to the needs of its customers. FDIC Member and Equal Housing Lender.

Citizens Financial Group, Inc. offers a wide range of retail and commercial banking products and services to individuals, small businesses, mid-sized businesses, large corporations and institutions. Citizens helps its clients reach their potential by listening to them and understanding their needs in order to offer advice, ideas and tailor-made solutions. In Consumer Banking, Citizens offers an integrated experience that includes mobile and online banking, a full-service customer contact center, and the convenience of approximately 3,300 ATMs and approximately 1,200 branches in 14 states and the district. of Columbia. Consumer Banking’s products and services include a full range of banking, lending, savings, wealth management and small business offerings. In commercial banking, Citizens offers a wide range of financial products and solutions, including lending and leasing services, deposit and cash management services, foreign exchange risk management solutions, interest rate interest and commodities, as well as loan syndication, corporate finance, mergers and acquisitions, and debt and equity markets capabilities. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.

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