Investment Momentum will Remain Moderate in 2025

The results of the WIFO Investment Survey show that investment plans will be cut again in 2025, with a gradual bottoming out becoming apparent. Companies in the manufacturing sector in particular reported reductions. The results suggest slight investment growth in the service sector. At industry level, the picture is mixed. Within manufacturing, producers of investment goods and intermediate goods are cutting back on investment. Firms report expansion of their investments in most services industries. This is especially pronounced in the real estate, professional, scientific and technical services, and providers of financial and insurance services. Small and medium-sized enterprises are likely to cut back on investment slightly more than large companies. The slowdown in investment growth is driven by declines in equipment and infrastructure investment, while intangible capital investment is cushioning the decline. For Austria's total economy, WIFO expects real gross fixed capital formation to decline by –0.7 percent in 2025 compared with the previous year.