Corporate controllers bullish for 1990-91.

CORPORATE CONTROLLERS BULLISH FOR 1990-91

Corporate controllers were decidedly upbeat in the latest National Association of Accountants poll of the 2,300 members of its Controllers Council. Of those responding to the survey, nearly two-thirds, or 64%, do not expect a recession in either 1990 or 1991.

Only 30% expect a weaker economy in the next 12 months, while 40% believe conditions will remain the same. The remaining 30% anticipate improving business conditions. In the previous poll conducted at the end of 1989, 15% predicted a stronger economy.

The more optimistic mood appears to be related directly to the sales and profit expectations at the controllers' own companies. A full 70% of them expect this year's profits to equal or exceed 1989 levels. Moreover, some 82% believe 1990 sales will meet or exceed last year's volume.

Interest rates have become the chief concern of 9 out of 10 of the controllers polled; this is the first time in the survey's history that controllers have expressed such concern. Usually, they consider inflation or government policy the most worrisome factor in the business outlook.

Over the short term, 45% of the controllers expect a rise in interest rates sometime during this year, with 34% looking for level rates and 21% forecasting a decline. Thirty-five percent project an interest rate increase in 1991, while 29% anticipate a decline. The remaining 36% foresee little or no change in interest rates next year.