Subdued Corporate Investment Growth in 2022

Results of the WIFO Spring 2022 Investment Survey

The results of the WIFO Investment Survey suggest a subdued expansion of investments for 2022. Investment growth in manufacturing is expected to decline more sharply than in the service sector. At the subsector level, the picture is mixed. Within manufacturing, only producers of non-durable consumer goods plan to expand investment. In the services sector, providers of financial and insurance activities as well as accommodation and food service activities are planning to increase investments. By contrast, investment momentum is likely to weaken significantly in administrative and support service activities, in information and communication as well as in real estate activities. Large companies are expected to stabilise overall investment growth, while investments by small and medium-sized companies (SMEs) are expected to curtail investment sharply. The slowdown in investment growth is evident in all subcategories (equipment, infrastructure and intangible investments). For Austria's economy as a whole, WIFO expects gross fixed capital formation to increase by 3.5 percent in real terms in 2022.