Intel send out worrying sign

US computer chip giant Intel, added to growing unease about the country’s slowing economy yesterday by ordering its Irish employees to take time off at Christmas.

The move, which will shut down Intel's manufacturing plant outside Dublin for two weeks, is a worrying sign given both Ireland's reliance on foreign direct investment and its deteriorating finances, analysts said.

"A year ago companies in the IT sector were telling us that recovery would happen within three to six months. They keep pushing out the boundaries and Intel's decision to do this is indicative of the tough trading conditions they're experiencing," said Jim Power, chief economist at Friends First.