Investment by industry hit five-year record high in 2006

In the year 2006 the German industry invested 49 billion Euros which is 3.4 billion or 7.4% more as compared to 2005. Back in 2005 investment had even decreased by 4.9%. Thus, according to the Federal Statistical Office, in 2006 the highest investment volume in five years was registered in the German industry.

This increase was achieved even though the most important investor, which is the car manufacturing industry, invested less in 2006 than in the previous year: here investment fell by almost one billion Euros or 9.5%. However, the investment decrease in the car manufacturing industry was not as strong in 2006 as in 2005 (2005: -2.4 billion Euros or –19.7%). Nevertheless the investment contribution by car manufacturers to total industrial investment in Germany amounted to 8.8 billion Euros which is still a 18% share in total investment (2005: 21%).

All the other most important German industries increased their investments in 2006 as compared to the previous year. Thus, investment increased by 6.1 billion Euros or 12.7% in the chemical industry, by 5.1 billion Euros or +18.9% in mechanical engineering, manufacturers in the metal processing industry invested 3.6 billion Euros or +23.6% more, companies from the TV, radio and communication technology industry increased their investments by 2.4 billion Euros (+15.3%) while manufacturers of rubber and synthetic materials also achieved a 2-digit investment growth rate (+2.4 billion Euros or +13.0%).

Together with companies from the food industry (4.3 billion Euros, +1.4%) and producers of machines for the generation and distribution of electricity (2.6 billion Euros or +6.6%) all the above mentioned industrial sectors combined accounted for an investment volume of 35.4 billion Euros which is a 72% contribution to the overall investment by the German industry. GERMAN