Businessmen grow more bullish
Washington — America's recovery is becoming broader, and optimism is rising in company reports. That's the verdict of a quarterly report of the National Association of Business Economists, Monitor correspondent Richard L. Strout writes.
And though Edgar R. Fiedler, president of the group, said deep concern continues over the size of federal deficits, the latest poll of business economists shows that most of them want the cut in federal income taxes, scheduled July 1, to proceed. ''The basic message of this survey comes through loud and clear in every sector of the economy,'' Mr. Fiedler said; ''the economy outlook is becoming more optimistic.''
Business economists take regular polls of fluctuations in sentiment in sensitive areas. Typical finding: Three months ago only 37 percent of economists reported rising demand in manufacturing and 42 percent from all sectors of the economy. Now, 59 percent report rising demand in general and 65 percent in the key figure of manufacturing.
How about the future? Mr. Fiedler, who is also vice-president of economic research at the Conference Board in New York, analyzed the figures as follows: ''Developing recovery'' is increasing corporate profit margins; forecasters have raised their estimate of gross national product from 3.3 percent last November to 4.1 percent; housing start forecasts are up. He said the improvement hadn't stimulated inflation, with only about a 3.9 percent jump in the consumer price index expected.