Top issue hurting consumer confidence in the first half of the year? Fuel prices.

Top concern for the second half? Dunno.

According to a study released by BDO Seidman LLP, 47 percent of the chief financial officers at leading U.S. retailers cited high fuels costs as the issue that had the greatest impact on consumer confidence in the first half of 2007.

But when it came to the second half, 29 percent said high fuel costs will be the main issue, while 25 percent said it will be the weak housing market. Nineteen percent said interest rates, while 15 percent said the sub-prime lending crisis.

Al Ferrara, a partner in the Retail and Consumer Products Practice at BDO Seidman:

When you consider that high fuel prices have been with us for some time now, the shift in concern towards issues such as interest rates and the sub-prime lending crisis seems to indicate a growing anxiety about a potential credit crunch for consumers.

Given the existing concern with the weak housing market - remember many consumers borrow based on the value of their homes - and the recent volatility in the stock market, discretionary income may dry up and that could have a negative impact on the retail sector as we move into the critical holiday shopping season.

BDO said 71 percent of the retailers anticipate total 2007 sales revenue to increase from 2006, with only 11 percent predicting a decrease. Overall, the CFOs estimated average revenue growth of 5.6 percent for 2007.

The BDO Seidman Retail Compass Survey is a national telephone survey conducted by market research consulting firm Market Measurement. The retailers in the study had revenue of more than $100 million and the survey was conducted in August of 2007.

(Photo: Reuters)