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U.S. LOCKED IN RECESSION, SAY CORPORATE CONTROLLERS

 U.S. LOCKED IN RECESSION, SAY CORPORATE CONTROLLERS
 MONTVALE, N.J., Oct. 29 /PRNewswire/ -- Seventy-four percent of U.S.


corporate controllers say the nation's economy is currently in recession. Of those, 57 percent say there has been no change since June, and 89 percent say the recession will not end by Dec. 31, 1992, 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 mangers who are responsible for the budgets and forecasts of their companies.
 The survey of the Controllers Council also found that:
 -- 82 percent said there will be an economic upturn in 1993, but 94 percent of those respondents believe it will be minor. Of those who said there will be minor upturn, 57 percent predict it will occur in the second quarter.
 -- 74 percent said the U.S. economy is currently in a recession. Of those, 57 percent said there had been no change since June, 23 percent said there had been an upturn, and 20 percent said there had been a deeper decline.
 -- 89 percent said the current economic climate will not deteriorate into a depression, but 11 percent say a depression is possible.
 What three factors will have the greatest impact on the economy over the next six months? The controllers rated the presidential election first, consumer spending second, and the federal budget deficit third.
 Where will the Dow Jones Industrial Average be on Dec. 31, 1992? Twenty-six percent said over 3300, 25 percent said 3300, 23 percent said 3200, 16 percent said 3100, 6 percent said 3000, and 9 percent said under 3000.
 Regarding interest rates, 70 percent said short-term rates will remain the same, 23 percent expect an increase, and only 7 percent expect a decrease by year end. Looking at long-term interest rates, 46 percent said rates will remain the same, 19 percent expect a decrease, and 35 percent expect an increase by Dec. 31, 1992.
 On a positive note, 86 percent said inflation rates will be a 4 percent or less over the next 12 months, and only 14 percent believe rates will be 5 percent or higher.
 Have the companies of controllers increased spending for capital equipment purchases over last year's third quarter levels? Twenty-nine percent said yes, 41 percent said spending would remain the same, and 30 percent said spending would decrease.
 The survey was based on a 31 percent response rate of 3,000 members of the IMA's Controllers Council and was conducted during the second week of October.
 Founded in 1919, IMA is the world's largest organization of management accountants and financial managers. IMA is based in Montvale.
 -0- 10/29/92
 /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: FIN SU:


AH-LR -- NY009 -- 6408 10/29/92 08:51 EST
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Date:Oct 29, 1992
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