ÖBB Annual Report 2023

53 Group Management Report MR8 | Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 8 This development was mainly due to the slump in the industrial and construction sectors. Manufacturing was in a recession from the second quarter of 2023, which further intensified towards the end of the year. One of the main reasons for this was the reduction in stockpiles of inventories that had arisen as a result of the multiple crises in the recent past. This destocking led to a slump in demand for intermediate goods and end products. 15 The knock-on effects of the energy price crisis also had a particularly severe impact on energy-intensive sectors such as the paper industry. 16 The investment climate has also deteriorated noticeably. The construction sector is particularly affected. The deterioration in the financing environment in particular had a negative impact here. 17 Development of industrial production (excluding construction) in Austria (Production index, labour-adjusted, quarterly change year on year in %) Source: Statistik Austria. Positive growth impetus came mainly from foreign trade. This applies to both exports of goods and services, the latter particularly in the tourism sector. In contrast, private consumption stagnated in 2023 as inflation remained excessive. The retail sector recorded a decline, while demand for services remained at least slightly positive. Inflation, at an annual average of 7.9%, remained significantly higher than both the ECB target of 2.0% and the average for Eurozone countries. Core inflation (excluding energy and food) proved to be persistent, although energy prices fell year-on-year. Unemployment remained at a low level compared to previous years despite the recession. Many companies are concerned about the shortage of skilled workers and are relying on “labour hoarding”, i.e. not cutting staff due to the economic situation, despite the tight order situation. 15 WIFO. 16 Bank Austria. 17 WIFO. 2.3% 22.5% 7.9% 9.5% 11.1% 8.3% 5.5% 2.9% 1.3% -0.2% -1.3% -5% 0% 5% 10% 15% 20% 25% 1. Q 2. Q 3. Q 4. Q 1. Q 2. Q 3. Q 4. Q 1. Q 2. Q 3. Q 2021 2022 2023