Willingness to Invest Gains Impetus – Leasing Sees Above-Average Expansion

Equipment investment will increase moderately by a nominal 2.3%, following last year's 2.5% upturn, according to the investment indicator jointly released by the ifo Institute and the Association of German Leasing Companies based on assessments of their current business situation by leasing companies. In view of the fact that the economic situation remains favourable in Germany and interest rates remain low, the development in investment in 2017 is not very dynamic by historical comparison. It is worth noting that economic growth is currently primarily driven by private and state consumption, as well as exports. Companies currently continue to demonstrate a cautious approach to investment, but the indicator shows a clearly higher pace of growth for next year. In their assessment of investment activity it is also worth taking into consideration that, in addition to assets, companies continue to invest heavily in attracting new staff and further training for their existing staff base. Against a background of moderate economic growth, the number of employed individuals seems to be rising inexorably in Germany, and many vacant positions cannot be filled.