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Western German manufacturing: Slight increase following sharp decline in investment

Author

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  • Annette Weichselberger

Abstract

According to the results of the latest Ifo Investment Survey, western German industrial firms reduced their investments in 2009 over the previous year by more than a quarter to a total of 38.1 billion euros. Such a sharp decline in investments is unprecedented in the history of the Ifo Investment Survey launched in 1955. However, in 2010 the number of firms that plan to increase spending over the previous year is clearly dominant. Nearly three fifths of the surveyed firms plan to invest more this year than in 2009, whereas two fifths of the respondents plan cuts in their investment expenditures. Based on the quantitative plans of the firms, investments n manufacturing in 2010 are likely to be nearly 4% higher than the previous-year level nominally (more than 4% in real terms). Whereas last year as a result of the weak investment activity the motive "expansion" lost somewhat in importance, in 2010 it was not only the dominant motive on the whole but also once again in nearly all main industrial sectors.

Suggested Citation

  • Annette Weichselberger, 2010. "Western German manufacturing: Slight increase following sharp decline in investment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(14), pages 24-30, July.
    • Handle: RePEc:ces:ifosdt:v:63:y:2010:i:14:p:24-30
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    File URL: https://www.ifo.de/DocDL/ifosd_2010_14_3.pdf
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    Citations

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    Cited by:

    1. Joachim Gürtler & Arno Städtler, 2010. "Rapid comeback of investment in machinery and equipment: Flash in the pan or investment boom? Leasing business is recovering quickly," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(18), pages 28-32, September.
    2. Stefan Sauer, 2010. "Investment Survey in Distribution 2010: Clearly improved investment propensity," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(21), pages 29-33, November.

    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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