Expansive Investment Climate

The Investment Indicator, compiled jointly by the ifo Institute and the Association of German Leasing Companies and which is based on the business situation assessments of the leasing companies, currently signals a nominal increase in equipment investment of 5.9% in 2018, following a 4.3% rise in the previous year. Growth is also expected for the coming year, albeit at a somewhat reduced momentum. This is due to the eight-year-long upswing and the steady growth in capacity utilisation in the German economy which has now turned into significant overload of overall economic capacities, especially in the construction sector. Therefore, investments aimed at increasing capacity are expected to grow.