Willingness to Invest for 2025 Further Reduced

The results of the WIFO investment survey show a decline in investment demand for 2024. The picture across industries suggests a broad-based downturn. Only in financial and insurance activities, and real estate activities, a majority of firms reported having increased their investments in 2024. Investment plans will continue to decline in 2025. Firms in the manufacturing sector are even more cautious than respondents in services with regard to their investment plans for 2025. Both large companies and small and medium-sized enterprises intend to further reduce their investments in 2025. Investment activity seems to be primarily driven by technological developments. Investments are most frequently reported to replace old plant or equipment. Capacity expansions currently only play a subordinate role as an investment purpose.