Neuchatel, Switzerland, March 26 (Bloomberg) -- Growth in Swissindustrial production slowed for a third time in a row in the fourthquarter, confirming signs the global economic slowdown is crimpingEurope's seventh largest economy. Production rose 5 percent from the same period a year earlier, theFederal Statistics Office said in a faxed statement. The growth rate forindustrial production has been declining steadily since peaking at 12percent in the first quarter. From the third quarter, production increased9.7 percent. The Swiss central bank cut interest rates last week, citing signs theeconomic slowdown in the U.S., Japan and Europe is affecting theSwiss economy more than expected. Swiss fourth- quarter growth wasthe slowest since the first quarter of 1999, a report earlier this monthshowed. ``New orders were a bit disappointing, indicating that the cooling globalgrowth will spill over into Switzerland,'' said Andreas Hoefert, a senioreconomist at UBS Warburg in Zurich. New orders in the fourth quarter rose 2.3 percent from the year-earlierperiod, less than a fifth of the 12.5 percent increase reported in the thirdquarter. In the first quarter, orders rose 15 percent in the year, thestatistics office said. Rising inventories are a further sign Swiss companies are feeling theeffect of slowing demand from the U.S. and Europe. The U.S. FederalReserve cut benchmark interest rates by 150 basis points so far thisyear to kick-start its stalling economy. Sales at industrial companies, ranging from drugmakers to chipproducers, increased 5.2 percent in the year, compared with 8.6percent in the third quarter. Inventories rose 6.9 percent, more than the3 percent in the three months through September. Economists in Switzerland forecast economic growth in 2001 will slowto between 2 percent and 2.5 percent from last year's 3.4 percent, onlower export growth. Swiss growth slowed to 1.8 percent in the fourthquarter from 1.9 percent in the third. Switzerland is the most export-dependent country in Europe, given itssmall domestic market of 7.2 million people.