Investment Expenditure and Leasing Continue to Grow

The investment indicator based on the current business situation and business expectations of leasing companies, which is jointly released by the ifo Institute and the Federation of German Leasing Companies, signalled a nominal 4.5% increase in equipment investment in 2018. Growth is still expected in the year ahead, albeit at a slower pace. Capacity bottlenecks constraining production will increasingly counteract any further growth in entrepreneurial investment activity. Furthermore, the world economy will probably expand at a slightly lower rate and will deliver fewer stimuli for the domestic economy.