Manufacturing expects hefty rise in investment

Manufacturing companies in the Netherlands expect a 19 percent increase in fixed capital formation this year compared with 2006. This makes them substantially more optimistic than last autumn, when they foresaw an increase of only 9 percent. The favourable prospects for 2007 are reported in all sectors of manufacturing, according to figures from Statistics Netherlands.

Strongest increase in metal and electrical engineering

Companies in the metal and electrical engineering sectors are the most optimistic. They expect to invest 35 percent more in 2007 than in 2006. Other branches of manufacturing are also positive. Chemical companies have the most modest outlook: they expect a growth of 7 percent.

Unlike manufacturers, companies in mineral extraction expect to invest less in 2007 than in 2006. They foresee a near 50 percent reduction in fixed capital formation.

Manufacturing invested just as much in 2006 as in 2005

Manufacturing companies invested 6.7 billion euro in 2006. This is about the same amount as in 2005. The chemical industry showed the largest growth in investment: 31 percent. In the food, drink and tobacco industry on the other hand, fixed capital formation fell by 17 percent.

Investment spending in mineral extraction rose strongly in 2006, from just over 1 billion euro in 2005 to 1.9 billion euro in 2006.