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Postponement of Investment Projects into 1996

Listed author(s):
  • Karl Aiginger


  • Margarete Czerny


  • Karl Musil


Registered author(s):

    In its semi-annual investment survey, WIFO in late October 1995 sampled 3,000 enterprises from manufacturing industry, construction, electricity generation and other public utilities for their business outlook and investment intentions. These four sectors increased capital spending by an aggregate 4 percent in nominal terms in 1995 and envisage a further expansion by 12 percent in 1996. Including other economic sectors not covered by the survey, overall gross fixed capital formation, adjusted for price increases, rose by 3½ percent in 1995; for the current year, a further advance of 3 percent is projected. Investment in machinery and equipment may rise by 7 percent in each year, while construction investment, having posted only small gains in 1995, is expected to remain flat over the next twelve months. Firms in the manufacturing industry envisage an increase in capital spending by almost one-fifth in 1996, whereas in the building sector the cutback of projects may continue. Electricity companies report a 13 percent nominal increase in investment plans, following an estimated 2.6 percent gain in 1995. However, the public transport and utility companies envisage a reversal in their investment behavior by reporting a 12 percent spending cut.

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    Article provided by WIFO in its journal WIFO-Monatsberichte.

    Volume (Year): 69 (1996)
    Issue (Month): 1 (January)
    Pages: 27-38

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    Handle: RePEc:wfo:monber:y:1996:i:1:p:27-38
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