39% of companies admit to reduce investment by year-end

In view of the effects of the pandemic and the support made available by the state, 39% of companies admit to reducing investment in the last three months of the year, cutting by more than half the investment made in the whole of last year. This is one of the conclusions of the 8th survey of the Portuguese Business Confederation (CIP), which also shows that 60% of companies believe that sales will decrease in the last quarter.

39% of the 558 companies contacted by CIP think that the investment that will be made in the last three months of the year will decrease, cutting “more than half” of what they invested last year, says the bosses’ study, released this Monday. Meanwhile, 43% of the companies expect to maintain the investment made in the last quarter of last year.

As far as sales are concerned, 60% of the companies believe that sales will diminish, in media, 36% on the last quarter, while 29% anticipates that they will maintain sales and 12% foresees a sales increase.

But not everything is bad. Compared to the last quarter, there are fewer companies thinking about firing workers: only 17% admit cutting, on average, 25% of the number of employees. According to CIP, this “will mean an effort by companies to maintain jobs in response to the drop in sales.” The same study shows that 83% of the companies plan to maintain or even reinforce human resources. “Companies have made a huge effort to maintain human resources despite the effects of the pandemic,” said António Saraiva, president of CIP.

Regarding state support, 77% of the companies consider that the state support programs are below (or far below) what is necessary, with 87% of the companies surveyed receiving bank financing to face the difficulties caused by the pandemic.