São Paulo, April 16, 2003 (Agência Brasil - ABr) - A study by the Federation of Industries of the State of São Paulo (FIESP) shows that, as far as company performance goes, industrialists chose caution: 46% believe that sales will be stable for the next three months, while 28% bet on expansion and 26%, on reduction. Company profits for the next three months will decline (52%), remain stable (41%), or increase (7%). "At the same time as the question of stability in sales is raised, when it comes around to profits, the view is much more pessimistic," said FIESP director, Clarisse Messer.

The most favorable point is the expectation for exports: 48% believe in an increase, and 36% bet on stability, while only 16% expect reductions. Cost pressures are high, according to the study. The industrialists assess the intensity as very strong (64%), strong (35%), moderate (9%), weak (1%), and non-existent (1%).

The study was conducted between March 18 and 26 and covered 401 entrepreneurs from São Paulo. The margin of error is 5%. (DAS)