Manufacturers expect modest rise in investment

• 5 percent more investment expected in 2012
• Prospects vary per sector
• Refineries and chemical industry positive, metal and engineering negative

According to new figures from Statistics Netherlands on expected investment in the manufacturing industry, manufacturing companies expect fixed capital formation to increase by 5 percent in 2012 compared with this year.

The expectations differ between sectors of manufacturing. Companies in the refining and chemical industry are positive about investment in 2012: they expect an increase of 17 percent. Manufacturers of food, drink and tobacco products, and companies in paper and publishing are also optimistic; they expect investment growth in 2012 to be around the same level as in 2011.

Manufacturers in metal and engineering, however, are more negative. They expect to spend 9 percent less on investment in 2012. For 2011 they expect investment spending to be 32 percent higher than last year. Fixed capital formation in metal and engineering is the highest within manufacturing. This sector invested more than 2 billion euro in 2010.

Manufacturers in the sectors wood and construction materials, and textiles, clothing and leather are also sombre about 2012. Companies in other sectors of manufacturing expect investment spending to be similar in 2012 to that in 2011.

For 2011 manufacturers are still optimistic. They expect to have invested 26 percent more overall than in 2010.