Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Economists: The stimulus didn't help

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- The recovery is picking up steam as employers boost payrolls, but economists think the government's stimulus package and jobs bill had little to do with the rebound, according to a survey released Monday.

In latest quarterly survey by the National Association for Business Economics, the index that measures employment showed job growth for the first time in two years -- but a majority of respondents felt the fiscal stimulus had no impact.

NABE conducted the study by polling 68 of its members who work in economic roles at private-sector firms. About 73% of those surveyed said employment at their company is neither higher nor lower as a result of the $787 billion Recovery Act, which the White House's Council of Economic Advisers says is on track to create or save 3.5 million jobs by the end of the year.

That sentiment is shared for the recently passed $17.7 billion jobs bill that calls for tax breaks for businesses that hire and additional infrastructure spending. More than two-thirds of those polled believe the measure won't affect payrolls, while 30% expect it to boost hiring "moderately."

But the economists see conditions improving. More than half of respondents -- 57% -- say industrial demand is rising, while just 6% see it declining. A growing number also said their firms are increasing spending and profit margins are widening.

Nearly a quarter of those surveyed forecast that gross domestic product, the broadest measure of economic activity, will grow more than 3% in 2010, and 70% of NABE's respondents expect it to grow more than 2%.

Still, the survey suggested that tight lending conditions remain a concern. Almost half of those polled said the credit crunch hurts their business. To top of page

Index Last Change % Change
Dow 21,012.42 74.51 0.36%
Nasdaq 6,163.02 24.31 0.40%
S&P 500 2,404.39 5.97 0.25%
Treasuries 2.27 -0.02 -0.83%
Data as of 1:03am ET
Company Price Change % Change
Bank of America Corp... 23.36 -0.03 -0.13%
General Electric Co 27.83 -0.45 -1.59%
Ford Motor Co 10.96 -0.09 -0.81%
Advanced Micro Devic... 10.89 0.00 0.00%
Chesapeake Energy Co... 5.55 -0.12 -2.12%
Data as of May 24
Sponsors

Sections

Starbucks executive chairman Howard Schultz says that male executives must be vulnerable to be great leaders. More

Blue Cross and Blue Shield of Kansas City is exiting Obamacare in 2018, possibly leaving nearly 19,000 Missouri residents without coverage option next year. More

Analysts at Morgan Stanley estimate that Waymo -- the self-driving car startup that is owned by Google parent Alphabet -- could be worth $70 billion. It seems like a stretch given that Waymo is unlikely to be profitable until 2022. More

Want to keep more of your money? Do these five things -- each of which takes 20 minutes or less -- so you can cut your spending and fatten your pocketbook. More