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German Manufacturing: Clear Increase in Investment Planned for 2018

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  • Annette Weichselberger

Abstract

According to the latest survey results, overall investments in German manufacturing, i.e. investments in new equipment and buildings, look set to fall by 12% in 2018. For 2017, by contrast, firm reports revealed an increase in investment of 3%. As in previous years, the main focus of investment activity in manufacturing in 2017 was on expanding capacity, primarily with a view to ramping up production. This will remain the case in 2018. Replacement procurement ranked second, while streamlining continues to play a minor role. Differentiated by economic sector, most branches intend to invest more this year. The sharpest increases of around 50% were reported by companies in the tobacco and clothing industries. Thanks to its high investment volumes, the planned increase in investment by the automotive industry accounted for a good seventh of the overall upturn in investment in German manufacturing.

Suggested Citation

  • Annette Weichselberger, 2018. "German Manufacturing: Clear Increase in Investment Planned for 2018," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(16), pages 46-50, August.
  • Handle: RePEc:ces:ifosdt:v:71:y:2018:i:16:p:46-50
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    Citations

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    Cited by:

    1. Wolfgang Nierhaus, 2019. "Business Cycle 2018: Forecast and Reality," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(03), pages 22-29, February.
    2. Magnus Reif & Arno Städtler, 2018. "Investment Expenditure and Leasing Continue to Grow," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(20), pages 46-50, October.

    More about this item

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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