Declining growth in equipment investment and movable property leasing

Despite a robust business development, leasing companies have been assessing their prospects increasingly more pessimistically for some months now. Accordingly, the business climate in the German leasing sector has been worsening since last summer. Currently it stands at 18%age points, only as half as high as at the end of 2007. For the first two months of 2008, the leasing firms continue to report a favourable business situation: 37% assessed current business as good in February, 59% as satisfactory and only 3% of the survey participants felt their current business situation was poor. Business expectations were still dampened, however, because of the business tax reform. The index of business expectations declined another 4%age points and is at a long-year low. Three in four leasing companies expect their business situation to remain stable in the coming six months, 16% foresee a more favourable business development and 12% have more pessimistic expectations.