U.S. business leaders have turned pessimistic, according to Grant Thornton LLP’s most recent Business Optimism Index, a quarterly survey of U.S. business leaders. Only 45% believe the U.S. economy will improve in the next six months (down from 64% three months earlier), 40% plan to increase staff (down from 49%), while 12% plan to decrease staff (up from 10%) The Index itself is down 7.1 points to 62.6.

“There are many factors causing continued concern amongst U.S. business leaders,” said Grant Thornton LLP CEO Stephen Chipman. “Soaring energy costs and Japanese manufacturing supply chain disruptions are weighing heavily, as are unresolved U.S. debt reduction issues and a corporate tax rate that still puts the U.S. at a global competitive disadvantage. Lower effective tax rates will encourage investment and business activity, spur job creation, and ultimately increase national wealth. Tax reform should be constructed to benefit the dynamic businesses that are the backbone of American economic growth and the driving force behind expanding employment. Included in this category are many privately held businesses, the Russell 2000 and similar groups.”

With regard to the Dodd Frank Act (which celebrates its one year anniversary in July), 64% believe that it will not improve accountability and transparency in the U.S. financial system.