German companies are pulling back on investment plans, survey shows

Munich – The ifo Institute’s survey showed a steep decline in investment expectations, falling to minus 9.0 points in November compared to minus 0.1 in March, the last time the businesses were questioned.

“Due to the structural location problems and high level of uncertainty regarding the economic policy framework, companies are holding back on their investments,” says ifo economic expert Lara Zarges.

Companies are also planning to invest less in 2025, but the survey suggests the decline will not be as pronounced as this year.

Investment expectations in the struggling automotive industry fell to minus 10.5 points in the current year. The figure had stood at plus 1.3 in March, highlighting the sector’s rapid downturn.

“Manufacturers of electrical equipment are especially pessimistic,” says Zarges. The indicator here fell to minus 21.0 points, down from minus 8.4 points in the spring.

Around 4,000 companies took part in the survey.