The volume of private sector investments in tangible fixed assets was 4.6 percent up in October 2013 from October 2012. For the first time since July 2012, private sector investments were higher than one year previously. This is mainly due to investments in the construction sector, in cars and machinery.
The increase in car sales has to do with changing tax laws. On 1 January 2014, the limits for CO2 emission, which apply to the tax on passenger cars and motorcycles (BPM) and the additional tax liability for company cars, will again become stricter. Therefore, many companies decided to buy new cars prior to 1 January. In addition, car sales may have been extra low in October 2012 due to tax measures introduced on 1 July 2012, when CO2 emission limits were also tightened.
By means of six indicators, the Investment Radar shows whether circumstances for Dutch private sector investments have improved or deteriorated. According to the Investment Radar, the investment climate has improved marginally in December 2013.
Private sector investments in tangible fixed assets (volume)
For more information on economic indicators, see the Economic Monitor.