Leasing: First-quarter business climate only marginally improved - still no growth in total investment spending in the economy in sight

According to the recent results of the Ifo Business Survey in leasing, the Ifo Business Climate Index stabilised at a relatively high level at the beginning of 2004. After four increases in succession, the recovery in leasing is in full swing. The reason for the positive development is that the leasing companies are more confident with regard to future business developments than before, although the positive assessments of the current business situation weakened somewhat. 23% of the enterprises evaluated their business situation as favourable, 73% as satisfactory, and 4% as poor. With regard to employment trends, a turn to the better was reported for the first time in many surveys: on balance nearly one in ten leasing companies expects an increase in employee numbers. Every second enterprise reported constraints in business activity: toping the list of restraining factors were legal conditions and taxes.