Accountants and chief financial officers reported a sharp rise in cost pressures during the second quarter, according to a new update from ACCA and IMA. The findings suggest that while global economic confidence improved from earlier depressed levels, the overall picture remains fragile.
The report points to higher business costs as one of the main challenges facing companies in Q2. That pressure appears to be weighing on decision-making across industries, especially as firms consider whether they can absorb the increases or pass them on to customers.
If more companies raise prices to protect margins, the survey indicates that inflation risks could intensify. In turn, that could increase the chance of further policy tightening as officials try to keep price growth under control.
The results also reflect the continuing economic fallout linked to conflict in the Middle East. Even with some improvement in sentiment, the survey suggests finance leaders remain cautious as they navigate rising costs, uncertain demand and a still-delicate global outlook.
