US recession may last until 2010: Survey

US finance executives believe the American economy is still in recession, despite signs growth may have resumed in the third quarter, a survey showed on Tuesday. The survey conducted by the Association for Financial Professionals also showed that many executives in the financial sector did not expect their organizations to resume hiring or capital spending in the next six months. The poll was carried out on Monday and nearly 1,000 chief financial officers and treasury executives participated.
About 69 per cent of respondents believed the recession, that started in December 2007, would continue well into 2010. Only 11 per cent believed the downturn had ended, while 20 per cent only saw it winding down before the end of the year.
The survey's findings are at odds with recent economic data and forecasts from private institutions that suggest the economy started growing in the third quarter after the longest and deepest contraction since the 1930s.
Nearly two-thirds of respondents in Monday's survey expected to maintain payrolls at current levels in the next six months, while 22 per cent saw a further reduction. Only 14 per cent anticipated their organization would resume hiring.
The finance sector is one of the areas worst hit by the recession, which was mainly triggered by the collapse of US housing market and the ensuing global credit crisis.
About 58 per cent of respondents expected to either maintain or cut capital spending over the next six months, while 21 per cent believed their organizations would increase spending, the survey showed