Dark clouds over industry

Industrial companies estimate that industry will witness a decline in the first quarter of this year, after the slowdown in industrial output seen during 2005. The industrial sentiment index, calculated by the Applied Economics Group (GEA) for the first quarter has shown a negative value for the first time since it began a year ago. The index does not vary much across sectors. The only sectors with a positive index are the IT and communication equipment industries and the metallurgic industry. The machinery and equipment industries, as well as the rubber processing industry and clothing industry saw a negative index, though higher than the industrial average. Although it is the result of a poll and lacks statistic value, the index calculated by the GEA for last year correctly anticipated the evolution of industrial output. Managers” expectations in 2005 were moderately pessimistic and indicated a low, yet positive industrial sentiment index. ZF