Western German manufacturing: lively investment activity

According to the results of the latest Ifo Investment Survey, manufacturing firms in western Germany intend to increase their investments by 9% over the previous year. For last year, the firms' responses indicated an increase of 7%. However, this increase must be viewed against the background of the weak investment activity of recent years. In real terms, the investments expected this year are still below the level of 2001. Whereas last year primarily the smaller firms invested strongly, for 2007 clear investment increases are planned by companies of all sizes. As the recent survey shows, the primary motive for investments in western Germany is expansion, less in terms of increasing capacities for the existing product programme but more for changing or expanding the product range.