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November 19, 2015
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In the German manufacturing sector real net fixed assets in 2013 were 0.8% lower than in 2000. Looking at the average, however, masks the fact that only four out of 19 manufacturing sectors expanded their capital stock compared with 2000. The major importance of the automotive industry is striking. Its net fixed capital formation exceeded that of all other manufacturing sectors combined between 1995 and 2006 and has done so since 2009. The auto industry boosted its real net fixed asset in Germany between 2000 and 2013 by nearly 38%. In the energy-intensive sectors, by contrast, the capital stock in Germany continues to shrink, a trend that has been ongoing for years. If economic policy conditions in Germany were to deteriorate in future, we would expect manufacturing companies to invest even more heavily abroad. [more]