Western German Manufacturing: Readiness to Invest Remains Strong

According to the latest results of the Ifo Investment Survey, Western German manufacturers intend to invest around 6% more in new buildings and equipment than last year. For the year 2011 the responses of survey participants indicated an increase of 16%. In terms of investment motives, capacity expansion regained importance compared to the previous two years. In 2011 the percentage of investment in expansion was at a similar level to that in replacement purchases. This year expansion should drop back again to second place behind replacement purchases. Rationalisation has clearly become less important in recent years.