Investment Plans for 2023 Significantly Reduced

The results of the WIFO-Investitionsbefragung (investment survey) show subdued investment demand for 2022. The picture across industries is mixed. While some, such as accommodation and food service activities, report a sharp drop in their investment activity in 2022, others, such as financial and insurance activities, continue to report strong expansion. Although companies in the manufacturing sector are significantly more restrained in their investment plans than firms in services, the latter are again planning to curtail their investment activity in 2023. Large companies are more likely to expand their investments in 2023 than small and medium-sized companies (SMEs). Investment activity is primarily driven by technological developments. Most often, investments are made to replace old plant or equipment. Capacity expansions play only a minor role as an investment objective.