ifo Investment Expectations - a New Early Indicator for Investment Activity by German Companies

As of 2015, German companies have been providing information on their actual and planned investment activities twice a year in May and November as part of the regular ifo economic survey. This provides an early indicator that is fairly closely correlated with the annual average change in gross fixed capital formation. The most recent survey in autumn 2018 suggests that companies have probably increased their investments more strongly this year than last year. However, a slowdown can be expected in the year ahead.