Are government actions lifting consumer spirits?

04.24.09
By Nicholas Storie

Recent reports show that the global economy is set to contract this year and if the recession comes to an end in the near future, the overall recovery will be slow. However, this grim economic news hasn't dampened the spirit of some consumers.

According to a new survey commissioned by the American Institute of Certified Public Accountants (AICPA), more Americans are "optimistic" or "very optimistic" about the economy's future than one year ago.

The AICPA reports that while nearly half of Americans surveyed say they are pessimistic about the 12-month horizon for the economy, 44 percent of respondents have a rosier outlook.

Some credit the government's actions to create jobs, offer tax incentives to new homebuyers, help families refinance their mortgage loans - among other programs - with the uptick in optimism.

"After months of bad news and declining economic indicators, we see some evidence that Americans are starting to look for reasons to be optimistic even if they expect the recession to continue," said Carl George, chair of the AICPA's National CPA Financial Literacy Commission.

"That is a good sign. We hope to see continued improvement in optimism as the substantial federal policies put in place begin to lift the economy and confidence is restored," George added.

Despite these upbeat results, some other questions in the surveyed revealed that not all consumers think the economy or the government is on the right track.

With a significant number of consumers cutting back on purchases made with credit, many survey respondents blame the banks for frozen credit markets and don't think they will use government funds to make new personal loans and business loans.

While half of the AICPA's survey respondents think the stimulus package passed by Congress will get the economy moving again within two years, a surprising 30 percent don't think it will help at all.

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Some still upbeat despite recession