Confidence among the region’s accountants fell back in Q3, with costs still above average and more expecting interest rates to rise. KUALA LUMPUR, Nov 5 (Bernama) -- Asia Pacific’s forward-looking New Orders Index improved for a second consecutive quarter in Q3, approaching its highest level in the survey’s history, according to the
latest Global Economic Conditions Survey (GECS) from
ACCA (the Association of Chartered Certified Accountants) and
IMA (Institute of Management Accountants). The region’s Capital Expenditure and Employment indices also rose to around their historical averages.
Confidence among Asia Pacific accountants fell significantly, reversing almost three-fifths of its sharp Q2 increase, although it remained slightly above its long-term average. Globally, confidence declined only marginally. Renewed Middle East tensions and rebounding energy prices may have contributed to the decline, but resilient US and global economies, alongside strong US investment in artificial intelligence (AI), which is driving Asia Pacific exports, support a constructive outlook.
Geopolitical instability topped the region’s risk priorities, cited by 24.1% of respondents, compared with 18.4% globally. Talent and skills concerns ranked first for 14.9% of Asia Pacific respondents, against 10% globally, while supply chain disruption was cited by 9.2%, compared with 6.6%. Respondents also highlighted climate change risks to supplies and services.
Cost pressures remain significant, with 62% of Asia Pacific respondents reporting increased operating costs in Q3, down from Q2 but above the series average of 52%. Meanwhile, 41% expect interest rates in their country to rise over the next three months, up from 24% in Q1 and 30% in Q2.
Globally, the economy remains resilient, although risks are increasing amid higher energy prices, inflation, government bond yields and tighter monetary policy. Almost 70% of accountants worldwide reported rising operating costs in Q3, while almost 50% expect interest rates to rise, up from 42% in Q2.
Jonathan Ashworth, Chief Economist at ACCA, said: “Asia Pacific’s key indicators appear quite encouraging, with the region being a major beneficiary of the global AI investment boom. Downside risks remain though, including a further large rise in energy prices and what is expected to be an extremely powerful El Niño weather effect. Anything that fuelled a meaningful slowing in the AI boom would also clearly be problematic.”
He added: “While the global economy has shown remarkable resilience this year, downside risks remain prevalent. The longer energy and other prices remain elevated, the greater the pressure on firms to pass on their cost increases, which would weigh on consumers and increase the likelihood of further rate hikes by the major central banks.”
Read GECS Q3 2026
here.
Source: ACCA
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--BERNAMA