Economy under pressure: Companies drastically reduce investment plans!

Economy under pressure: Companies drastically reduce investment plans!

In Germany, companies have drastically shortened their investment plans, which is clear from the current data of the IFO Institute. The investment expectations for the current year fell to minus 9.0 points in November, compared to minus 0.1 points on the last survey in March. This makes it clear that the structural location problems and the high uncertainty regarding the economic political framework, the companies hesitate, such as Finanzmarktwelt.de Particularly noteworthy is the auto industry, the investment expectations of which have dropped to minus 10.5 points. In the trade, the value even fell to minus 15.0 points. The most pessimistic outlook comes from the manufacturers of electrical equipment that recorded investment expectations of minus 21.0 points. Only the chemical industry can escape this tendency, since its expectations have increased to plus 12.6 points.

reserved investment expectations for the coming year

The company representatives are not only skeptical in the current year, they also plan to invest less for 2025. With minus 6.6 points, the balance indicates that the decline will not be as strong compared to 2024. In the processing industry, the balance of 1.4 points fell to minus 8.8 points in March. Non-energy-intensive industries show that the balance fell to minus 11.6 points from plus 0.3 points. Mechanical engineers and vehicle manufacturers have also significantly corrected their expectations: vehicle construction achieved only minus 10.5 points in November in spring, while the mechanical engineers landed at minus 6.2 points. In contrast, there is a slight increase in willingness to invest in the energy-intensive sectors, but the general tendency remains unmistakable, as ZVW.de