
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, September 3, 1993                   TAG: 9309030137
SECTION: BUSINESS                    PAGE: A-11   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

EXECUTIVES' CONFIDENCE DECLINES

Business executives' confidence in the economy fell in August to the lowest level since just after the recession, the U.S. Chamber of Commerce said Thursday.

Martin A. Regalia, the group's chief economist, said the drop in the bimonthly confidence index reflected "the economy's inability to develop any real momentum."

The business confidence index fell to 45.6 in August from 47.7 in June and 59.3 in April. It was the lowest level since the index hit 39.3 in December 1991, six months after the recession ended.

An index reading of 50 or more indicated moderate economic growth. A reading of 70 or more signals strong growth.

"In addition to their concern over the economy's failure to generate significant job growth, businesses are unsure of the administration's economic plan and are worried about future regulatory and health care costs," Regalia said.

Of the 8,280 businesses surveyed for the latest index, 13.9 percent said the economy would improve over the next six months, 48.6 percent said it was in decline and 37.5 percent said it would hold steady.

Executives were a bit more optimistic about sales: 36.8 percent expected an increase, 25.1 percent a decline and 38.1 percent no change. On employment, 17 percent expected an increase, 20.6 percent a drop and 48.2 percent no change.

by CNB