Standard & Poor’s says that the U.S. brokerage industry can expect a good year, although weaker than a very strong 2005.

In a new report, the rating agency says that the industry had another strong quarter in the fourth quarter of 2005, albeit weaker than the exceptionally strong third quarter. “We think companies, especially in the case of Goldman Sachs, took a breather in the fourth quarter considering the entire year had been so strong. We saw some trends, however, that are likely to continue through 2006,” said Standard & Poor’s credit analyst Tom Foley.

Debt capital markets and underwriting weakened somewhat, and while equity trading has picked up, especially in derivatives, it will not be enough to offset the weakness that is likely in fixed income for the year, it notes. Overall, 2006 should be a strong year, as 2005 was, but it’s likely to be somewhat weaker.