The autumn 2005 estimates by manufacturers show that they expect in to invest 13 percent more this year than in 2004. The expected value of capital goods to become operational this year was lower than six months ago, when manufacturers expected to spent 20 percent more on investment than in 2004.
Within industry, the entrepreneurs in oil and chemicals foresaw the largest increase in investments in 2005. They expected to invest 55 (oil) and 20 percent (chemicals) more than in 2004. In 2004 investments in the chemical industry fell by 35 percent, so that the 2005 investment level in chemicals is still lower than in 2003. Entrepreneurs in the food, beverages and tobacco industry were the only ones expecting to invest less in 2005. They expected a 2 percent reduction.
Manufactures were cautious this spring with respect to forecasts of investment plans for 2006. They expected the value of capital goods becoming operational in 2006 to be 17 percent lower than in 2005. It is quite usual in the spring estimates for companies to be cautious in their expectations for the next calendar year. In autumn the producers made a positive adjustment to the 2006 forecast. Now they expected investments in 2006 to stay at the 2005 level.
Investments by manufacturing companies 1)