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INSTITUTE OF MANAGEMENT ACCOUNTANTS: CORPORATE CONTROLLERS PREDICT ECONOMIC UPSWING IN 1993

 MONTVALE, N.J., Feb. 26 /PRNewswire/ -- For the first time in nearly two years, almost half (49 percent) of U.S. corporate controllers agree that the nation is out of recession and 63 percent said the economy is in an upswing, according to a survey released today by the Controllers Council of the Institute of Management Accountants (IMA).
 With 90,000 members, IMA conducted a survey of 3,000 members of its Controllers Council, the financial executives and managers who are responsible for the budgets and forecasts of their companies.
 The survey of the Controllers Council also found that:
 -- 90 percent said there will be an economic upturn in 1993, but 93 percent of those respondents believe it will be minor. Of those who said there will be a minor upturn, 36 percent predict it will occur in the second quarter.
 -- 51 percent said the U.S. economy is currently in a recession. Of those, 63 percent said there had been an upturn since the last quarter, 34 percent said there had been no change, and only 3 percent said there had been a deeper decline. These results are a dramatic change from the previous quarter when 74 percent said the economy was in recession, with 20 percent who said the nation was in a deeper decline than the previous quarter and only 23 percent who said there had been an upturn.
 What three factors will have the greatest impact on the economy over the next six months? The controllers rated consumer spending first, the federal budget deficit second, and the new president third.
 Where will the Dow Jones Industrial Average be on March 31, 1993? Twenty-nine percent said its would be over 3,400, 30 percent said 3,400, 24 percent said its would be at 3,300 and 17 percent said 3,200 or below.
 Have interest rates hit bottom? Fifty-one percent said short-term rates will remain the same, 47 percent expect an increase, and only 2 percent expect a decrease by March 31, 1993. Looking at long-term interest rates, 49 percent said rates will remain the same, 42 percent expect an increase, and only 9 percent expect a decrease by Marc 31,1993.
 Inflation should remain relatively low for the next 12 months. Eighty-one percent of the Controllers Council said inflation rates will be 4 percent or less over the next 12 months, and only 19 percent believe rates will be 5 percent or higher.
 Have the companies of controllers increased spending for capital equipment purchases over last year's fourth quarter levels? Thirty percent said yes, 45 percent said spending would remain the same, and 25 percent said spending would decrease.
 The survey was based on a 21 percent response rate of 3,000 members of IMA's Controllers Council and was conducted during the first week of February.
 Founded in 1919, IMA is the world's largest organization of management accountants and financial managers. IMA is based in Montvale.
 -0- 2/26/93
 /CONTACT: Daniel M. Hrisak of Institute of Management Accountants, 201-573-6154, or 404-992-2187/


CO: Institute of Management Accountants ST: New Jersey IN: SU: ECO

SH-TS -- NY006 -- 0756 02/26/93 09:51 EST
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Date:Feb 26, 1993
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