Election Results Enhance Outlook for Future Business Conditions According to AFP Survey of Treasury and Finance Professionals

Attendees at AFP 25th Annual Conference Predict Increased Costs of Borrowing and Cite Terrorism and Federal Deficit as Potential Threats

November 9, 2004 – Bethesda, MD – The results of last week’s election enhance the prospects of future business conditions in the United States, according to a survey of the treasury and finance professionals attending the Association for Financial Professionals’ (AFP) 25th Annual Conference, the premier event for financial professionals. In the survey conducted yesterday, November 8th, conference attendees indicated that they expect business conditions to improve in the coming year, but most also expect the cost of borrowing and issuing debt to increase over the next 12 months.

Fifty-four percent of finance professionals believe that the re-election of President George W. Bush and Republicans maintaining control of both houses of Congress will have a positive impact on U.S. business conditions. Only 17% of survey respondents believe that last week’s election results will have a detrimental impact on business conditions, while 29% believe the election will have little impact on business conditions.

Additionally, 55% of finance professionals expect business conditions to improve in the next 12 months. Only 7% believe business conditions will deteriorate in the next year.

“Our survey demonstrates the positive outlook for business conditions among the more than 5,000 finance professionals that have come together from around the globe this week at the AFP Conference to keep pace with challenges facing organizations and the treasury profession,” said Jim Kaitz, President and CEO of the Association for Financial Professionals. “With responsibilities that include managing trillions of dollars through the global financial markets each day, and making decisions that are critical to corporate performance, AFP members have a unique view of the U.S. economy. They represent a broad range of industries, public and private corporations of varying sizes, governments and the banking industry.”

Mirroring the general expectation that the Federal Reserve will increase interest rates, three quarters of respondents expect the cost of borrowing and issuing debt to increase over the next 12 months. Thirteen percent expect debt costs will increase by at least 100 basis points while 60% expect an increase between 25 and 75 basis points. Conversely, 23% expect rates to remain near current levels, while only 4% expect the costs of borrowing and issuing debt to decrease.

Survey respondents also identify several threats to continued economic growth. Finance professionals are especially concerned about a possible detrimental impact on continued economic growth that may result from the threat of terrorism (42%), federal government deficit spending (41%), rising interest rates (37%), and outsourcing of jobs overseas (32%).

More than 1,100 finance professionals participated in the survey conducted at the 25th Annual AFP Conference. A copy of the results can be obtained at http://www.AFPonline.org/adn

The Association for Financial Professionals, headquarters in Bethesda, Maryland, supports more than 14,000 individual members from a wide range of industries throughout all stages of their careers in various aspects of treasury and financial management. AFP is the preferred resource for financial professionals for continuing education, career development, certifications, research, representation to legislators and regulators, and the development of industry standards. Sponsored by the Association for Financial Professionals, The CTP designation is the globally recognized industry standard for treasury and a requirement for a changing profession. More than 16,000 professionals have earned AFP’s certification since 1986. For more information about AFP, visit www.AFPonline.org.