Investment will Remain Steady at a Low Level. Results of the WIFO Investment Survey of Spring 2003

For 2003, the Austrian manufacturing industry as well as the electricity, gas, water and public transport sectors plan to invest € 6.8 billion at current prices. The plans indicate a minor increase in investment spending, up 1.8 percent compared to 2002, but slower than foreseen in October-November 2002, when a plus of about 5.7 percent was forecast for 2003. The reason for the decline is that industries producing non-durable consumer goods substantially cut back on their investment plans. Another reason for the poor overall investment performance is that investments in buildings will decrease sharply by about 30 percent. In contrast, investment in machinery and equipment including ICT investment will grow by 6.4 percent. This increase will be substantial enough to offset the decline in investment in structures.