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The outlook for euro area business investment – findings from an ECB survey of large firms

Author

Listed:
  • Andersson, Malin
  • Jarvis, Valerie
  • Le Breton, Gwenaël
  • Morris, Richard

Abstract

This box summarises the findings of a recent ECB survey of leading non-financial companies on the outlook for business investment. The responding firms anticipate more subdued euro area investment growth over the next three years but increasing investment in other advanced economies and emerging markets. The responses suggest that, among major recent developments, technological change is the most important factor influencing investment strategies. Future growth in euro area investment is expected to be focused in particular on intangibles (especially IT, software and databases), while low profitability and a weak demand outlook top the list of constraints on euro area investment. Respondents widely perceived anticipated increased defence spending as a potential catalyst for investment, while fewer perceived Next Generation EU funds as having supported investment. JEL Classification: D22, E22, E66, G31

Suggested Citation

  • Andersson, Malin & Jarvis, Valerie & Le Breton, Gwenaël & Morris, Richard, 2025. "The outlook for euro area business investment – findings from an ECB survey of large firms," Economic Bulletin Boxes, European Central Bank, vol. 4.
    • Handle: RePEc:ecb:ecbbox:2025:0004:3
    Note: 427284
    as

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    More about this item

    Keywords

    activity; business; investment; survey;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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