Survey: CFO’s believe Economic Stimulus Act unsuccessful in stemming recession

Chicago About 69% of CFOs of leading U.S. retailers believe that the American Recovery and Reinvestment Act of 2009 has not been successful in stemming the recession, according to a recent study by BDO Seidman, LLP, an accounting and consulting organization.

When it comes to comparing which stimulus package -- the American Recovery and Reinvestment Act of 2009 or the Economic Stimulus Act of 2008 -- had the most positive impact on consumer confidence, CFOs are torn. About 41% said the 2009 package was more effective, while another 41% said the 2008 package was better. The remaining percent said that neither package has had a positive impact.

Unemployment is top-of-mind this year, with 62% of CFOs citing it as the issue having the greatest impact on consumers so far in 2009.

Looking forward to the balance of 2009, more CFOs (64%) cite unemployment as having the greatest impact on consumer confidence, followed by the housing market (20%), personal credit availability (11%) the 2009 Stimulus Act (4%) and high fuel costs (1%).

In regards to the recession, another 41% of CFOs are predicting that the economy will experience a meaningful economic turnaround in second quarter 2010.

The second-highest concentration of CFOs (17%) expects that the economy will not turnaround until 2011 or later.