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Manufacturers and Construction Industry Expect Investments to Continue their Decline in 2010. Results of the WIFO Spring 2010 Investment Survey

Listed author(s):
  • Martin Falk


  • Andrea Kunnert


  • Gerhard Schwarz


According to the results of WIFO's spring 2010 investment survey, investment in manufacturing expressed in current prices is expected to decrease by 11 percent in 2010. A detailed look at broad manufacturing industry groups shows that the decline will be most pronounced in motor vehicles, investment and intermediate goods, while it will be more moderate in consumer oriented industries such as food and beverages. On the other hand, manufacturing firms will increase their investment in hardware (+9 percent) and software (+8 percent) in 2010. For 2009, the survey showed that in the manufacturing sector investment in research and development was stable (+0 percent) and for environmental protection was slightly down (–2 percent). Low demand for construction products and a high level of uncertainty about future construction activities have characterised the investment behaviour of construction firms. Following a record high, the volume will reach only about 55 percent in 2010. After two consecutive years of massive reductions in investments, a further drop by 6 percent is expected for 2010.

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Article provided by WIFO in its journal WIFO-Monatsberichte.

Volume (Year): 83 (2010)
Issue (Month): 7 (July)
Pages: 603-615

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Handle: RePEc:wfo:monber:y:2010:i:7:p:603-615
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