Revenue Developments, Investment Behaviour and Expectations for Normalisation. Results of the Fourth Special Survey on the COVID-19 Crisis as Part of the WIFO-Konjunkturtest of October 2020

In the WIFO-Konjunkturtest of October, special questions were asked for the fourth time about the effects of the COVID-19 crisis. The companies expect an average decline in revenues of 12 percent for 2020 due to the COVID-19 crisis. For 2021, most companies are uncertain and skeptical and expect small increases (average +1.8 percent). However, the reports are heterogeneous. About 24 percent of the companies fear further revenue declines for 2021, 30 percent revenue increases. The investment behaviour was strongly influenced by the COVID-19 crisis: about 60 percent of the companies with planned investments in 2020 claim to have postponed or cancelled investment projects. 57 percent of all surveyed companies use the investment bonus, which leads to additional investments and pull-forward effects. However, the companies are skeptical about a rapid normalisation of their business situation: the majority of companies expect a normalisation in six months at the earliest.