Western German manufacturing plans to increase investments by 4% in 2005 after three years of spending cuts

According to the results of the latest Ifo Investment Survey, western German manufacturing reduced its investments again in 2004, contrary to original intentions. For 2005, however, an increase of 4% is expected. The major investment motive this year, however, is not so much the standard expansion, i.e. the enlargement of existing production programmes but the expansion or change of the product range. Of the 62% of the enterprises that plan increased investments in 2005, almost two thirds plan to invest in such restructuring measures.