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Improved business sentiment in leasing - expansion in plant and equipment investment

Author

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  • Joachim Gürtler
  • Arno Städtler

Abstract

The business climate in leasing improved noticeably in the first quarter of 2006 - none of the surveyed leasing companies expressed anxiety with regard to future business. At 20% more companies than before assessed their business in the first quarter of 2006 as good, 78% were satisfied and a mere 2% complained about their current situation. Even more frequently than before, the surveyed firms expect the positive developments to continue into the summer half-year: Almost two fifths of the leasing companies expect a more favourable business situation; 62% foresee an unchanged business development. The labour market in the German leasing industry has shown the first clear signs of recovery. In the first quarter of 2006 an increase of 3½ was reported. Particularly striking was that the larger firms have expanded their personnel. The early indicator for investment compiled jointly by the Ifo Institute and the Federal Association of German Leasing Enterprises points to higher investments in plant and equipment. However, the leasing companies do not expect investment to pick up until the second half of the year.

Suggested Citation

  • 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.
    • Handle: RePEc:ces:ifosdt:v:59:y:2006:i:10:p:31-35
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    References listed on IDEAS

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    1. 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.
    2. Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute, 2006. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Herbst 2006," Wirtschaft im Wandel, Halle Institute for Economic Research (IWH), vol. 12(2. Sonder), pages 1-67.
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    Cited by:

    1. Manuel Birnbrich, 2006. "Retailing: Clear revival of investment activity in 2006," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(14), pages 19-22, July.
    2. Manuel Birnbrich, 2006. "Wholesaling: Investment plans clearly expansive for 2006," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(15), pages 31-34, August.

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    JEL classification:

    • L89 - Industrial Organization - - Industry Studies: Services - - - Other

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