Cost pressures reached a record high in Q2 2026 amid the fallout from the Middle East conflict, yet confidence among accountants recovered from near record lows.
Key findings
The key themes from this quarter's survey are as follows:
- Over three-quarters of accountants globally reported increased operating costs in Q2 2026, a series record.
- 83% of CFOs experienced increased costs, following a record-breaking rise of over 20 percentage points from Q1.
- Confidence among accountants recovered in Q2 from what was close to a record low, though it remains weak by historical standards.
- The Global New Orders, Capital Expenditure and Employment indices all declined, pointing to some slowing in global growth.
- Confidence in Asia Pacific is now meaningfully above average after a sharp Q2 recovery, but it remains weak in North America and Western Europe.
- Economic pressures returned as the top risk priority among accountants in Q2 (22%), ahead of geopolitical instability (20%) and cybersecurity (14%).
- 72% of respondents expect inflation in their country to increase over the next three months.
- 42% expect interest rates to rise in their country over the next three months, up from just 16% in Q4 2025.
Explore the findings
The fallout from the Middle East conflict continues to shape the results of the ACCA and IMA Global Economic Conditions Survey. Over three-quarters of accountants globally reported increased operating costs in Q2 2026 — above the previous record set in the aftermath of Russia's invasion of Ukraine — amid soaring commodity prices and supply chain disruptions resulting from the conflict. Strikingly, 83% of CFOs experienced increased costs, following a record-breaking rise of over 20 percentage points from Q1. This is close to series peaks recorded in 2022 and 2023.
Despite soaring costs, there was some recovery in confidence among accountants globally in Q2, from what was close to a record low in Q1. While they remain quite downbeat by historical standards, the improvement likely reflects the relative resilience of the global economy and signs at the time of the survey of movement towards a potential resolution of the conflict, which may have reduced fears of worst-case scenarios.
Declines in the Global New Orders, Capital Expenditure and Employment indices point to some slowing in global growth, likely reflecting headwinds from increased private sector caution, rising inflation, and tighter-than-expected monetary policy. That said, they do not appear to be signalling a major economic slowdown.
Confidence among accountants remains weak by historical standards in North America and Western Europe, but after a sharp recovery in Q2 is now meaningfully above average in Asia Pacific. While the region is very exposed to developments in the Middle East, signs of a potential resolution of the conflict at the time of the survey and the relative resilience of the global economy have likely been factors boosting sentiment — as well as the global AI boom, of which the region's exporters are major beneficiaries.
Rising prices are feeding through to expectations. 72% of accountants and finance professionals expect the rate of inflation in their country to increase over the next three months, down slightly from Q1, but up significantly from 50% in Q4 2025. On interest rates, 42% now expect a rise in their country over the next three months, compared with 35% previously and just 16% in Q4 2025.
Economic pressures returned as accountants' top risk priority in Q2 2026 (22%), ahead of geopolitical instability (20%) and cybersecurity (14%). Respondents described how understanding today's risk landscape extends beyond traditional economic cycle management, pointing to the converging effects of prolonged wars, rising cybercrime and policy uncertainty. AI featured prominently, with comments focusing on sustainable value, cyber resilience and accountability.
