Weaker Automotive Business Dampens Leasing Growth - Capital Investments Stay on Track for Growth

With 6.4% growth in 2017, leasing outperformed overall economic capital expenditure, as the latest ifo investment survey of German leasing companies shows. For the year 2018, the ifo Investment Indicator, which is jointly released by the ifo Institute and the Bundesverband Deutscher Leasing-Unternehmen (Federal Association of German Leasing Companies), signals an increase in equipment investment of 4.5% in nominal terms. Investments in non-residential construction are expected to increase by 2.1% in real terms, which should result in nominal growth of over 6%. The investment trend would thus be even more dynamic than in the previous year. This is probably also due to the upswing, which has been going on for some time now, and the steady rise in capacity utilisation in the German economy since 2013.