West German manufacturing 2002: plans point to a 2% decline in investment

According to the results of the recent Ifo Investment Survey, west German manufacturers have revised their investment plans downwards during the course of the year. Investment in west German manufacturing at DM 93bn in 2001 was only 3% more than in 2000. In light of the weak economy and uncertain outlook, the firms plan to reduce investment by ca. 2%. Replacement investment is the strongest spending motivation. Capacity enlargement is in second place, but will noticeably gain importance in 2002.