Production in the manufactured goodsindustry has been falling since mid-1986 and will decline by
between one and two pct this year after a 2.5 pct increase in
1986, the Ifo economic institute said.
    An Ifo report said recessionary influences were affecting
the engineering industry particularly. It saw a decline of two
to three pct in this sector after a 5.2 pct rise in 1986.
    Orders, especially from abroad, were also falling sharply
for capital goods in the electronics sector, it added.
    Ifo also predicted stagnation in the automobile industry in
1987 after a particularly successful 1986 when production rose
5.1 pct.
    Chemical industry production, which fell by 0.9 pct last
year, was likely to stagnate or decline by one pct in 1987.
This sector suffered from slack demand from abroad and from low
domestic consumption.
 REUTER
