According to the last Federation of Industry survey for 2006, manufacturers expect a significant improvement in production in the coming three months. As a result, industrial confidence for the sector was clearly less negative than that registered in the previous month.

Manufacturing demand remained significantly weak with little changes reported for total and export order books. Stocks of finished products remained relatively unchanged while the number of firms expecting prices to fall registered a slight decline.

In addition, employment expectations shifted in positive territory for the first time since July.

The investment goods sector

The investment goods sector registered negative industrial confidence as order book levels deteriorated significantly, especially on the domestic market, the FOI said.

Production expectations remained relatively unchanged in positive territory while stocks of finished products were reported at below normal levels.

The number of firms in the sector expecting selling prices to fall increased substantially while the outlook for employment points to job losses in the coming three months.

The consumer goods sector

Consumer goods manufacturers reported improvement as production expectations turned in positive territory for the first time since August.

The survey also suggests some revival in demand for the sector as the number of firms reporting a below normal amount of order books declined significantly while stocks of finished products remained unchanged.

As a result, industrial confidence for the sector recovered substantially.

The sectoral outlook for selling prices and employment were clearly much better than reported in the previous month.

The intermediate

goods sector

Industrial confidence for intermediate producing firms was significantly less negative than in November.

This is entirely explained by a marked improvement in production expectations for the sector which offset a slight increase in stocks of finished products.

The balance of manufacturers in the sector reporting a below normal amount of order books remained unchanged.

Sectoral results show a negative outlook for selling prices while no changes are expected in the workforce for the coming three months.

The December Industry Survey was carried out during the first three weeks of the month. There were 188 respondents to the survey, employing around 13,179 employees.