Companies expect to invest more in 2005

Manufacturing companies expect to invest 20 percent more in 2005 than in 2004. This may indicate a recovery for investment. Last year manufacturing investment was at its lowest for ten years. Companies in mineral extraction and the public utilities also expect to increase investment, according to figures from Statistics Netherlands.

Investment expected to recover across the board

Companies in all sectors of manufacturing expect investment spending to recover. Manufacturers in the petroleum and coal processing industries and in metal and electrical engineering are especially positive in this respect. They expect to invest 53 percent and 34 percent more respectively than in 2004. Companies in mineral extraction and public utilities expect 63 percent and 6 percent growth respectively.

It should be taken into account that companies often adjust their expectations downwards in the course of the current calendar year.

Manufacturing industry expects lower investment in 2006

Manufacturing companies expect to invest less in 2006 than this year. They report an expected decrease of 17 percent. Companies in mineral extraction and public utilities are more positive, they expect investment spending to increase by 19 and 30 percent respectively next year. 

Lowest investment by manufacturing for ten years

The manufacturing industry spent about 6.6 billion on fixed capital formation in 2004. This is the lowest amount since 1994. Investment spending peaked in 1997, at 8.8 billion euro.

Last year fixed capital formation decreased in the chemical industry in particular. In the metal sector and in electrical engineering investment spending was also lower in 2004. Other sectors of industry spent more on investment.

Investment spending by mineral extraction companies was substantially lower in 2004 than in 2003. Public utilities on the other hand invested more.

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