Industrial Cash-Flow Maintains a High Level in 1990

Earning capacity of Austria's manufacturing industry remained high in 1990. Like in 1989 the cash-flow ratio attained 34 percent. However, the rate of increase in cash-flow of 15 percent fell slightly short of the 1989 record figure due to the weakening of the cyclical boom and the implications of the Gulf crisis. Also, the spread of profitability among industrial branches increased. Strong domestic investment and repercussions from the investment boom in unified Germany benefitted particularly the manufacturers of capital goods. Profits in this sector exceeded the 1989 record level. Conversely, profitability of basic goods industries was most affected by the slower business cycle momentum.