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FINANCE COMPANY EXECUTIVES EXPECT BETTER BUSINESS CONDITIONS IN 1993

 WASHINGTON, Jan. 15 /PRNewswire/ -- A survey of finance company executives about their business outlook for 1993 shows that they expect solid growth in consumer receivables and in income for their companies. They also expect delinquencies on consumer loans to decline from last year's figures, with consumer bankruptcy losses about the same.
 The group surveyed were members of the board of directors of the American Financial Services Association -- the national trade association for non-banking providers of consumer credit. Companies responding to the survey represented $102 billion in consumer loans outstanding.
 The larger companies -- ranging from $586 million to $31.1 billion in consumer loans outstanding -- expect to see their consumer receivables increase 9.9 percent over 1992 totals, and their net income to grow 10.4 percent over last year. They predict a drop of 4.2 percent in their delinquency figures for consumer loans and a very slight decline -- 0.4 percent -- in losses due to consumer bankruptcies. These companies also project that their average cost of funds will show a slight decrease from 1992, but that their effective corporate tax rate will rise slightly. They expect to see a small increase in their work force -- 1.7 percent.
 The companies responding to the survey with less than $500 million in consumer receivables have somewhat different expectations. They expect a significantly larger increase in consumer receivables -- 14.3 percent. And, while the larger firms see a decline in their average cost of funds, the smaller companies expect a 2.8 percent increase over 1992. They also predict that their effective corporate tax rate will show a significant increase -- 5.77 percent -- over last year. The smaller firms on average expect that their work force will increase this year by 6.25 percent.
 Expectations for the U.S. economy in 1993 are mixed, although similar for both groups. Respondents on average expect the gross domestic product growth rate to be near 1992 levels and the unemployment rate to decline slightly. Some inflationary predictions arise from both groups who expect the consumer price index to climb to about 3.5 percent and the prime rate to rise to 6.9 percent.
 -0- 1/15/93
 /CONTACT: Frances B. Smith of American Financial Services Association, 202-296-5544/


CO: American Financial Services Association ST: District of Columbia IN: FIN SU: ECO

TW -- DC012 -- 5343 01/15/93 11:56 EST
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Publication:PR Newswire
Date:Jan 15, 1993
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