Strong growth in leasing - more indications for in increase in investment activity

According to the latest results of the Ifo Business Survey in Leasing, the leasing companies are very satisfied with their current business situation. Up to mid-2005 indications have increased for a slight improvement in the investment climate. In the second quarter of the year, the investment companies not only gave more favourable assessments of the business situation. but also their business expectations reflect increased confidence. On balance 28% look forward to better business in the second half of 2005 (previous quarter: 24%). Also the smoothed climate indicator, which more or less marked time in the second half of 2004, continued its upward trend. The investment index based on the future assessments of German leasing companies compiled by the Ifo Institute and the Federal Association of Leasing Companies (BDL) - a reliable indicator of equipment investment - points towards greater investment spending in 2005 over the previous year. Nominal aggregate investments in plant and equipment is expected to grow by ca. 3%, based on present calculations.