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Wholesaling: Buoyant demand induces strong growth in investments

Manuel Birnbrich
ifo Institut für Wirtschaftsforschung, München, 2007

ifo Schnelldienst, 2007, 60, Nr. 16, 33-36

For the current year, gross fixed capital formation in wholesaling is expected to increase by more than 10 percent. This is indicated by the latest Ifo Investment Survey in wholesaling. The investment boom has impacted nearly all of whole-saling: both industrial B2B wholesalers as well as consumer goods distributors, both large and small businesses intend to invest more this year. Also this year the focus will be on equipment investments, which will grow more strongly than investments in buildings. The positive sentiment among wholesalers is also re-flected in their employment plans. In 2007 employment in wholesaling will in-crease for the first time in many years.

JEL Classification: L810

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ifo Institut für Wirtschaftsforschung, München, 2007