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Western German manufacturing: Investment increase of 4% planned for 2004

Author

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  • Annette Weichselberger

Abstract

As the current results of the Ifo Investment Survey show, western German manufacturing invested approximately €42.4 billion in new buildings and plant in 2003, which was a drop of 2% in comparison to the previous year (real ½%). This means that investments of western German manufacturers declined for the second year in succession. In light of the slow recovery in economic activity, the investment propensity of industrial firms is increasing again. For 2004 the currently planned investment level in western German manufacturing is about 4% (real, 3%) more that the results of the previous year. The major investment goal is for replacement, as was the case last year; a third of investment spending is planned for replacement. Expansion investments stand in second place at about one quarter, followed by rationalisation measures at just 20%.

Suggested Citation

  • Annette Weichselberger, 2004. "Western German manufacturing: Investment increase of 4% planned for 2004," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(01), pages 35-40, January.
    • Handle: RePEc:ces:ifosdt:v:57:y:2004:i:01:p:35-40
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    File URL: https://www.ifo.de/DocDL/ifosd_2004_1_6.pdf
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    Cited by:

    1. Arno Städtler, 2004. "Equipment leasing in Germany and Europe remains on the growth path," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(23), pages 26-36, December.

    More about this item

    JEL classification:

    • L00 - Industrial Organization - - General - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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