Advisors’ Economic Outlook Sours as Practice Confidence Rises

Financial advisors’ overall confidence fell to minus-2 in October from plus-4 in July, according to a quarterly survey of 213 advisors. Views of the global and domestic economies, government policy and client risk tolerance weakened, while confidence in firms’ performance increased.

The October score was the lowest since April. The survey recently shifted from a monthly schedule to a quarterly one.

The global economic system was the largest source of concern. Its score fell 16 points to minus-50 from minus-34 in July, reversing most of the summer’s improvement and nearing October 2025’s minus-51.

Fifty-four percent of advisors expect greater volatility in the global economic system over the next three months, up from 43% in July. Forty-three percent expect volatility to remain unchanged, while 4% expect it to decline, compared with 9% in July.

The score for the overall economy fell 11 points to plus-27 from plus-38 in July. Fourteen percent of advisors expect the economy to contract over the next three months, up from 10% in July. The share expecting growth fell to 41% from 48%, while the share expecting no change rose to 45% from 42%.

The government policy score fell to minus-7 from plus-5. It was the first negative reading since June 2024 and the lowest since May 2024. Monetary policy accounted for the largest part of the decline: 21% of advisors expect it to have a positive effect on clients’ financial well-being over the next three months, while 33% expect a negative effect.

Independent registered investment advisors had a policy score of minus-22, compared with minus-1 for other advisors in the survey.

Expectations for client risk tolerance also weakened. Fifty-eight percent of advisors expect it to remain unchanged over the next three months, down from 67% in July. Twenty-six percent expect it to decrease, up from 19%, while 16% expect it to increase, compared with 14% in July.

Practice performance had the survey’s highest score. It rose nine points to plus-35, the highest level since May, when it reached plus-39. Thirty-eight percent of advisors expect their firms to exceed their goals over the next three months, 60% expect to meet them and 3% expect to fall short.

Advisors who use commission-based payment structures had a practice confidence score of plus-54, compared with plus-21 among those who do not use commissions.