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Rapid decline in equipment investments - business climate in leasing remains chilly

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  • Joachim Gürtler
  • Arno Städtler

Abstract

The Ifo Business Climate in leasing continues to recover but is still in frosty territory. Responsible for the recent improvement are the business expectations, while the current business situation is still assessed as catastrophic. At the beginning of autumn, nearly half of the survey participants evaluated their business as bad, 39 percent said it was still satisfactory, and 14 percent see their present business situation as good. The investment indicator compiled by the Ifo Institute together with the Federal Association of German Leasing Companies (BDL) points to a drastic decline in plant and equipment outlays. For 2009, on average, a minus of 21 percent over the previous year is likely. In 2010 some weakening of the decline is expected. For the first three quarters under consideration, there will still be a contraction in spending on machines, equipment and vehicles of between eight to nine percent, and thus a decline to the investment level of the weak year 2003.

Suggested Citation

  • Joachim Gürtler & Arno Städtler, 2009. "Rapid decline in equipment investments - business climate in leasing remains chilly," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 62(19), pages 31-34, October.
    • Handle: RePEc:ces:ifosdt:v:62:y:2009:i:19:p:31-34
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    References listed on IDEAS

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    1. Klaus Abberger & Christa Hainz & André Kunkel, 2009. "Bank lending policies: Why do large firms in particular suffer?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 62(14), pages 32-34, July.
    2. Annette Weichselberger, 2009. "Western German manufacturing: Sharp reduction in investment in 2009," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 62(13), pages 25-30, July.
    3. Joachim Gürtler & Arno Städtler, 2007. "Excellent business situation for leasing - boom in equipment investment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(12), pages 54-57, June.
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    JEL classification:

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

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