Corporate Investment Declining in 2024

The results of the WIFO Investment Survey suggest a further reduction in investment plans for 2024. The aggregate investment activity is likely to decline. The majority of the investment reductions are reported in manufacturing in particular. Weak growth is expected in the services sector. At sector level, the picture is mixed. Within manufacturing, producers of durable consumer goods and intermediate products are reducing their investments. In the services sector, investments in administrative and support service activities and accommodation and food service activities are likely to shrink, while providers of financial and insurance activities and companies in information and communication are expecting robust investment growth. Small and medium-sized enterprises are likely to cut their investments more significantly than large companies. The slump is evident in equipment and infrastructure investments, as well as in investments into intangible capital. For Austria's economy as a whole, WIFO expects a reduction in real gross fixed capital formation in 2024 (–2.4 percent).