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Rapid comeback of investment in machinery and equipment: Flash in the pan or investment boom? Leasing business is recovering quickly

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  • Joachim Gürtler
  • Arno Städtler

Abstract

The German leasing industry regained confidence in an upswing in the summer of 2010. Two years after the collapse, assessments of the current business situation are on balance moving in the positive area again. In August 2010 about one in four survey participants considered his business to be good, 49% assessed their current business situation as satisfactory and 24% as bad. On average of the first eight months about 36% of the surveyed firms on balance considered their business outlook to be favourable. The investment indicator, which is based on inventory assessments, also reveals a remarkable dynamism in investment activity on an annual average. The leading indicator for machinery and equipment investment, including other plant, points to (nominal) growth of about 6% for the current year. At the beginning of 2011 the pace of investment will initially slow down due to advancement effects, from the second half of the year the firms are likely to invest again increasingly in machinery, equipment and vehicles. In the first three quarters of 2011 investment in machinery and equipment is expected to increase by 8 to 9%.

Suggested Citation

  • 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.
    • Handle: RePEc:ces:ifosdt:v:63:y:2010:i:18:p:28-32
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    References listed on IDEAS

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    1. Reinhard Hild, 2010. "Strong plus in car production in Germany expected," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(05), pages 44-49, March.
    2. 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.
    3. Hans-Werner Sinn, 2010. "Euro Crisis: The Significance of the Euro Rescue Plan for Germany and Europe," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(10), pages 03-09, May.
    4. 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.
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    Cited by:

    1. 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.

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    JEL classification:

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

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