Recovery Increases Earnings Power in Austria's Manufacturing Industries in 2011. Cash Flow and Equity in Austria

In 2011, the cash flow to sales ratio should have increased in the Austrian manufacturing sector. The rise reflects the continued recovery after the severe crisis in 2008 and 2009, which was also marked by a drop in the cash flow to revenue margin. For 2011, econometric estimates based on a panel of NACE 2-digit industry data indicate a cash flow to sales ratio by Austrian manufacturing firms of 11.8 percent, a slight increase by 0.4 percentage point over 2010. The rise can be explained by the positive development of the manufacturing sector which in 2011 saw a real growth in value added of 11.4 percent, driven by an increase in international demand of 7.7 percent and in real investments by 14 percent. Comparative international figures show that the equity ratio of Austria's manufacturing sector of 39.6 percent is slightly below the average of all sample countries of 41.8 percent.