GERMANY: Manufacturers to invest 5% more in 2015, fell short in 2014

German manufacturers plan to invest an additional 5% in 2015, according to a preliminary evaluation of the on-going Ifo Investment Survey carried out for the European Union.

Small and medium-sized companies (SMEs) in particular intend to increase their expenditure on new construction and equipment in the year ahead, while large companies are planning smaller increases. Responses have already been collected from around two thirds of the 2,300 firms participating in the survey.
Manufacturers nominally increased their investments by around 4% over the course of this year. Company reports in spring, by contrast, indicated that a 9% increase was to be expected. The price-adjusted rates of change are just below this figure due to only slight increases in the price of fixed investment at the moment. Companies of all sizes significantly scaled back their investment plans over the course of this year.
In the framework of the current Ifo Investment Survey, Germany’s manufacturers are asked about their additions to fixed assets in 2014, as well as their investment plans for 2015. The final results of the survey are scheduled to be released at the beginning of 2015 in the ifo Schnelldienst.