Sideways Motion of the Earnings in Austrian Manufacturing. Cash Flow and Equity in 2007

Based on a small panel of NACE 2-digit industries, econometric estimates indicate a cash flow to sales ratio for Austrian manufacturers of approximately 10.6 percent in 2007, which is only 0.1 percentage point above the level of 2006. This is the result of an increase in industrial output and employment and a decline in unit labour costs on the one hand, and, on the other hand, a deterioration of exchange rates and cloudy expectations for the second half of 2007.