West German manufacturing: Brisk investment activity in 2011

The companies in the western German manufacturing sector intend to spend 14% more (nominal and real) for new buildings and equipment than last year, according to the latest Ifo Investment Survey. In 2010 it is estimated that investing was at the level of the previous year. The investment survey was conducted in spring 2011 with responses from 1900 western German companies. Measured in terms of gross fixed capital spending, the companies represent about 48% of the western German manufacturing sector. In addition to capital expenditures in the previous two years, the firms were asked to provide information on their investment plans for 2011, and the objective of investment activities.