Rise in Q2 operating costs widespread

More than eight in 10 CFOs said operating costs rose last quarter, and the war with Iran is a major reason why.

That’s according to the latest Global Economic Conditions Survey (GECS) from the Institute of Management Accountants and the Association of Chartered Certified Accountants. The survey polled 647 members of the two accounting organizations worldwide, including a relatively small sample of 52 CFOs, between June 3 and June 17.

Costs have increased sharply in 2026, according to respondents. More than four in five (83%) CFOs said costs were up in Q2, 20 percentage points higher than in Q1 and close to a record. And more than three-quarters of all respondents (76%) stated that operating costs had risen, a record high and far greater than the average of 48% in the survey’s history.

The US-Iran conflict is likely behind the jump in costs, the survey’s authors noted, as it’s driving up commodity prices and causing supply chain disruptions. The future state of the global economy, they wrote, might depend on the war’s outcome.

“Meaningful progress on ending the conflict and a return of oil prices to pre-conflict levels may diminish the impetus for monetary tightening among the major central banks,” they wrote, and would be conducive to growth in the back half of 2026. The reverse would happen if hostilities increase, they added.

Looking ahead, 72% of accounting and finance professionals indicated that they thought inflation would rise in their countries in the next three months, down slightly from Q1 but up from 50% who predicted so in Q4 2025. Four in 10 (42%) foresaw interest rates rising in their countries next quarter, up from 35% in Q1 and 16% in Q4 2025.

AI and cyber concerns. Economic pressure (22%) edged out geopolitical instability (20%) and technology/data/cybersecurity (14%) as the risks accountants saw as their top priority in Q2. In write-in comments, respondents described cybersecurity risks as “systemic and existential.”

The authors also noticed a shift in tone in comments on AI, with less of an emphasis on adoption and governance and more doubts expressed about the technology’s value. “Accountants in their various roles are increasingly questioning whether the current pace and scale of investment in AI is grounded in realistic assumptions about returns,” they wrote.