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Western German manufacturing: Investment recovery after three-year decline

Author

Listed:
  • Annette Weichselberger

Abstract

In 2006 enterprises in western German manufacturing plan to increase their investments in new buildings and equipment by nearly 5% (6% in real terms). For 2005 the survey participants reported an investment increase of 2%; in total the enterprises invested €40 billion. This marked only a partial implementation of original investment plans; in spring an increase of 4% was expected for 2005. Larger enterprises in particular corrected their plans downwards, whereas small and medium-sized firms made considerable investments. The main investment motivation of western German industrial firms is replacement purchases. In second place is capacity expansion; the rationalisation motive continues to lose ground. 1,700 industrial firms representing 51% of western German manufacturing participated in the survey carried out by the Ifo Institute.

Suggested Citation

  • Annette Weichselberger, 2006. "Western German manufacturing: Investment recovery after three-year decline," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(02), pages 49-54, January.
    • Handle: RePEc:ces:ifosdt:v:59:y:2006:i:02:p:49-54
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    File URL: https://www.ifo.de/DocDL/ifosd_2006_2_6.pdf
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    Citations

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    Cited by:

    1. Joachim Gürtler & Arno Städtler, 2006. "Improved business sentiment in leasing - expansion in plant and equipment investment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(10), pages 31-35, May.
    2. Joachim Gürtler & Arno Städtler, 2006. "Cautious start in equipment investments in the first half of 2006 - Only minimal improvement in leasing's business climate," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(05), pages 35-39, March.
    3. Peter Jäckel, 2006. "East German manufacturing: Double-digit growth in investment slated for 2006," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(11), pages 28-30, June.

    More about this item

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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