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Western German manufacturing: despite clouded economic situation, a further investment plus planned

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  • Annette Weichselberger

Abstract

According to the results of the latest Ifo Investment Survey, manufacturing firms in western Germany clearly increased their investments in 2007. At €43 billion, the level of investment (nominal and real) was a good 10 percent above the level of 2006. The increase in investment was broadly based. Most industry branches increased their investments; only in a few cases was there a reduction in investment vis-à-vis 2006. Despite the increasing indications of a business-cycle slowdown, investments in western German manufacturing will again increase in 2008, according to current plans. For 2008, the responses of the enterprises indicated an increase in investments (nominal and real) of nearly 9%. As the latest investment survey results show, the firms' investment planning is above all aimed at expanding or altering the existing production programme. The second priority is replacement investment, whereas the rationalisation motive has continued to lose importance.

Suggested Citation

  • Annette Weichselberger, 2008. "Western German manufacturing: despite clouded economic situation, a further investment plus planned," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(16), pages 29-34, August.
    • Handle: RePEc:ces:ifosdt:v:61:y:2008:i:16:p:29-34
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    File URL: https://www.ifo.de/DocDL/ifosd_2008_16_04.pdf
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    Cited by:

    1. Joachim Gürtler & Arno Städtler, 2008. "Downturn in equipment investments - an historical low in the equipment leasing business climate," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(23), pages 49-52, December.
    2. Joachim Gürtler & Arno Städtler, 2008. "Plant and equipment investment will still boost economic activity in 2008 - movables leasing to expand at a slower pace," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(18), pages 31-34, September.
    3. Arno Städtler, 2008. "Clear cut backs in investments and leasing - 2009 threatens to be recessionary," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(24), pages 70-81, December.

    More about this item

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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