Investment spending in the manufacturing sector fell 6.9 pct in 2020 compared with the previous year, the Foundation for Economic and Industrial Research (IOBE) said in a report on Monday.
The survey on industrial investments in the period October-November 2020 showed that investment spending in the manufacturing sector is expected to rise by 2.8 pct this year, helped by an anticipated demand for products and by technological developments, while on the other hand, negative factors were economic policy in general and capital taxation.
IOBE said that investment spending in 2019 grew 21.5 pct and noted that the food/beverage/tobacco sector was expected to record the highest percentage growth rate this year (6.7 pct), followed by non-metal minerals (20.2 pct).
The survey showed that 51 pct of respondents said the impact of demand was either positive or very positive in 2020 and predicted a similar trend in 2021.
The contribution of technological developments is important, with a 41.2 pct saying it was positive and a 44.1 pct very positive for 2020 and 2021.
A 26.5 pct of enterprises expressed positive and very positive estimates on the impact of availability and capital costs, both for 2020 and 2021.