Leasing is not immune to the downturn - but the investment indicator gives ground for cautious optimism

The expectations of the businesses that participate in the Ifo Leasing Survey can provide a major contribution to forecasting the development of investment in plant and equipment in German industry. According to the results of the most recent survey, as of mid-2001 the growth of investment spending in the German economy is no longer slowing down. In the first three quarters of 2001, investment in new plant and equipment should increase by between 4½% and 5%. This is well in line with the recent forecast of the Ifo Institute for the whole year (+ 4.5%). On the whole, aggregate investment in plant and equipment in 2001 will grow at only half the rate of 2000.