Impairments due to the Ukraine War and Possible Effects of Gas Stops on Production in the Manufacturing Sector

Results of the Special Survey on the Ukraine War as Part of the WIFO-Konjunkturtest of May 2022

The Ukraine war further increased uncertainty and impaired the majority of Austrian companies (55 percent). Larger companies (73 percent) in all sectors and companies in manufacturing (67 percent) were particularly affected, with rising energy and input prices cited most frequently. On average, companies affected by the Ukraine war have more pessimistic expectations for the business situation and expect to have to increase their sales prices more frequently. Directly affected companies from the manufacturing sector expect a slightly disproportionate reduction in their production due to the shortage of natural gas.