Skip to main content

Table 5 Firms’ reactions to shocks, by sector (percentage of firms attributing relevance or great relevance to a given reaction)

From: European firm adjustment during times of economic crisis

 

Weak demand

Strong demand + weak credit shock

Strong demand + strong credit shock

All sectors

Reduce prices

31.5

41.7

50.3

Reduce margins

37.0

46.2

62.2

Reduce output

21.3

61.9

66.8

Reduce costs

66.5

77.8

93.8

Manufacturing

Reduce prices

34.6

37.4

48.1

Reduce margins

38.7

44.5

63.7

Reduce output

36.1

74.6

76.8

Reduce costs

68.0

77.1

95.3

Trade

Reduce prices

37.1

48.1

60.4

Reduce margins

46.5

55.4

75.2

Reduce output

15.6

34.6

43.7

Reduce costs

78.4

86.6

96.1

Market Services

Reduce prices

25.6

48.1

50.9

Reduce margins

30.9

45.3

54.1

Reduce output

10.8

47.4

51.4

Reduce costs

58.7

74.1

86.8

  1. Source: WDN surveys. Note: Figures are employment-weighted and rescaled excluding “do not know” answers