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Retailing: Clear revival of investment activity in 2006

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  • Manuel Birnbrich

Abstract

After a slight decline in aggregate investment activity in the German economy last year, growth in investment is expected for 2006. The investment hesitancy in German retailing is also about to end, according to a special survey by the Ifo Institute. In addition to a clear recovery in equipment investment, a slight revival of construction activity is also expected. Retailers have profited this year from the positive effects of the World Cup and by the advance purchases of durable consumer goods in anticipation of the rise in VAT next year. Retail sales in 2006 will thus increase more strongly than last year. The Ifo survey indicates that especially the larger retail enterprises will profit most from the gradual revival of private consumption. They are also are responsible for the recovery of investment activity, whereas the situation for many smaller enterprises, particularly in eastern Germany, remains difficult.

Suggested Citation

  • 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.
    • Handle: RePEc:ces:ifosdt:v:59:y:2006:i:14:p:19-22
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    References listed on IDEAS

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    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. Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute, 2006. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Frühjahr 2006," Wirtschaft im Wandel, Halle Institute for Economic Research (IWH), vol. 12(1. Sonder), pages 1-72.
    3. Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute, 2006. "The State of the World Economy and the German Economy in the Fall of 2006," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(20), pages 03-54, October.
    4. Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute, 2006. "The State of the World Economy and the German Economy in the Spring of 2006," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(08), pages 03-60, April.
    5. Corporate author, 2006. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Frühjahr 2006," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 73(18), pages 225-286.
    6. 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. Arno Städtler, 2006. "Investment Expansion Boosts Leasing SectorValue-added tax increase retards private leasing," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(23), pages 21-31, December.

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    More about this item

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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