Inventory Investment as Reflected in Statistics

Investment in inventories plays no important role in the growth of gross domestic product in Germany in the long-term. Yet it is nevertheless significant from a short-term point of view. It can have a pro-cyclical effect and exacerbate cyclical swings, but may also be anti-cyclical and offset such swings. This article focuses on the question of storage as featured in Ifo company surveys and reveals links with the national accounts.