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Expansive Investment Climate

Author

Listed:
  • Magnus Reif
  • Arno Städtler

Abstract

The Investment Indicator, compiled jointly by the ifo Institute and the Association of German Leasing Companies and which is based on the business situation assessments of the leasing companies, currently signals a nominal increase in equipment investment of 5.9% in 2018, following a 4.3% rise in the previous year. Growth is also expected for the coming year, albeit at a somewhat reduced momentum. This is due to the eight-year-long upswing and the steady growth in capacity utilisation in the German economy which has now turned into significant overload of overall economic capacities, especially in the construction sector. Therefore, investments aimed at increasing capacity are expected to grow.

Suggested Citation

  • Magnus Reif & Arno Städtler, 2018. "Expansive Investment Climate," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(10), pages 32-35, May.
  • Handle: RePEc:ces:ifosdt:v:71:y:2018:i:10:p:32-35
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    References listed on IDEAS

    as
    1. Annette Weichselberger, 2018. "German Manufacturing: Clear Investment Increases Planned," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(05), pages 35-38, March.
    2. Stefan Sauer & Thomas Strobel, 2015. "Latest Results from the Ifo Investment Database: Investment in Intellectual Property Gains Importance," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(06), pages 40-42, March.
    3. Klaus Wohlrabe & Timo Wollmershäuser, 2017. "Constructing an Aggregate ifo Capacity Utilisation," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(15), pages 26-30, August.
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other

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