BRUSSELS (Reuters) – The share of European companies planning to increase rather than decrease investment is expected to have halved in 2024 because of concerns about getting skilled staff, high energy costs and general uncertainty, the European Investment Bank said.
The share of firms that expected to invest more minus those that expected to invest less fell to 7% for 2024 from 14% in 2023, the bank said in its 2024 annual survey.
“The decline in firms’ investment appetite contrasts with the widespread recognition at the European level of significant structural investment needs for innovation, digitalisation, the green transition, and dealing with geopolitical risks and supply chain disruptions,” it said.
European firms also prioritise replacement investment rather than boosting their capacity, the survey said.
“This contrasts sharply with U.S. firms, where 47% prioritise capacity expansion for the next three years, compared to 26% of EU firms,” the EIB said.
The survey showed that 79% of European firms saw uncertainty about the future as an obstacle to investment against 75% of U.S. companies.
High energy costs were cited as a problem by 77% of firms in Europe and 68% of firms in the U.S., while lack of qualified staff was a problem for 77% of firms in the EU and 90% in the United States.
(Reporting by Jan Strupczewski; editing by Philip Blenkinsop and Chizu Nomiyama)
