Manufacturing companies expect to invest more

The spring 2006 estimates by manufacturers show that they expect to invest much more this year than in 2005. They expect a 14 percent increase on 2005 in the value of capital goods to become operational in 2006.

Manufacturers are far more optimistic this spring than in the autumn of 2005. Last autumn they expected the investment level in 2006 to equal that of 2005. Anyway, it is not unusual for companies to adjust their expectations during the year, as they gain insight in delaying, postponing or stepping up their expected investment projects.

The expectations for 2006 mean that investments in the manufacturing industry continue to rise. In 2005, manufacturing companies increased their investments by almost 9 percent. In 2004 and 2003, investments were much lower than the previous year. In 2005 investments in almost all branches in manufacturing industry showed a substantial increase, apart from the manufacturing of food, beverages and tobacco. In 2005 the greatest increase in investments occurred in the oil and coal processing industry.

In 2006, all entrepreneurs in manufacturing are optimistic about investments. Manufacturing companies in the metal and electrical machinery and equipment industry expect to invest 26 percent more than in 2005.

Investments by manufacturing companies 1)

Investments by manufacturing companies 1)

1) 2000 up to 2005 realisations, 2006 based on manufacturing companies’ expectations