Business approval of Clinton descends to 17 percent; Executives upbeat on Republican Congress; Favor passage of GATT.

NEW YORK--(BUSINESS WIRE)--Nov. 29, 1994--President Clinton's approval ratings continue to slide, and are now at their lowest level ever among top executives at U.S. businesses. According to a poll from The Nightly Business Report and Reuters, less than one fifth (17%) of business leaders approve of the way Clinton is handling his job as President, down from 24% in August and 30% in November 1993. More specifically, eight out of ten (83%) say he is doing a poor job in providing strong leadership, 71% disapprove of his handling of the economy, and 56% disapprove of his handling of foreign affairs.

The Nightly Business Report/Reuters poll, conducted by Yankelovich Partners Inc., surveyed the top business executives at 354 companies with sales ranging from $1 million to more than $100 million. The poll carries a 5% sampling error.

Further bad news for Clinton is that half of the business leaders polled think disapproval of the President was most responsible for the Republican victory in the mid-term elections. Though most indicators lately suggest a strong economy, almost twice as many business leaders say the economy will get even better over the next 12 months due to the incoming Republican Congress - 59% vs. 31% who say it will remain the same. Nearly four out of five (78%) report being more confident in the new Congress' ability to manage the economy as compared to one out of seven (14%) who are less confident.

Although business leaders seem hopeful, they hold some realistic expectations. While a majority (60%) sees the change in composition of Congress as representing a new era, 39% believe it will be politics as usual. The American public feel just the opposite with 63% saying it will be politics as usual and 32% hoping for a new era (according to a Time/CNN survey also conducted by Yankelovich).

Executives Are Unfamiliar With GATT But Support It Anyway

Surprisingly, the U.S. business community is not very knowledgeable about the General Agreement on Tariffs and Trade (GATT). Half (53%) say they are somewhat familiar with the agreement to be voted on by the House today, and 38% say they are not too familiar. Larger companies are more informed about GATT; three quarters (76%) of companies with more than $100 million in sales say they are very or somewhat familiar.

Still, 53% of executives say they personally favor the agreement, and favorability levels increase significantly among medium and large businesses (eight out of ten or more). The business leaders apparently believe in the ideals of free trade, because 65% expect GATT to benefit the world economy, 54% the US economy, and 52% the balance of trade. But when it comes to their own businesses, most respondents (58%) weren't sure if GATT would affect them as positively. Larger companies had higher expectations - 46% of companies with $25-$100 million in sales and half of companies with more than $100 million in sales believe GATT will benefit them.

The Nightly Business Report is the most-watched daily business news program on television. Seen nationwide on public television, it is produced by WPBT2 in association with Reuters, and nationally underwritten by Digital Equipment Corporation, A.G. Edwards, Inc. and the Franklin/Templeton group.

Reuters (NASDAQ:RTRSY) is the international news and financial information services group, supplying news and information services to the financial markets, corporations, and the media.

For raw poll results or other information, call Lynne Tierney at 212/349-1980.

CONTACT: The Nightly Business Report

Lynne Tierney, 212/349-1980