economic situation
Ifo: Companies are investing less
Economic researchers see location problems and uncertain economic policy conditions as the cause of the decline in investment plans. The view is poor.
Companies in Germany have significantly reduced their investment plans. This emerges from the Ifo economic surveys. The Ifo investment expectations for the current year fell to minus 9.0 points in November, after minus 0.1 points in the last investment survey in March. “Because of the structural location problems and the high level of uncertainty about the economic policy framework, companies are holding back on their investments,” says Ifo economic expert Lara Zarges.
Companies are planning a further decline in investments for the coming year. However, the balance of minus 6.6 points suggests that the decline is smaller than this year.
In the automotive industry, investment expectations fell to minus 10.5 points this year. For trading companies, the balance fell to minus 15.0 points. “The manufacturers of electrical equipment are particularly pessimistic,” says Zarges: Here expectations fell to minus 21.0 points. The chemical industry, on the other hand, invested more than planned and its investment expectations rose to plus 12.6 points.
In the coming year, vehicle manufacturers do not want to reduce their investments any further (minus 0.4 points). In the chemical industry, however, the plans are negative again (minus 2.6 points). Retail companies want to invest even less next year (minus 18.0 points). Around 4,000 companies took part in the survey.
dpa
Source: Stern
