According to the Munich-based ifo Institute leasing companies are very satisfied with their current business situation. In May 54% of leasing companies considered their business situation to be good, 42% to be satisfactory and just 4% were dissatisfied. Business prospects were also very bright in May. However, due to leasing companies´ uncertainty with regard to tax policies business prospects oscillate quite strongly each month.
The so-called investment index which is calculated by the ifo Institute in co-operation with the Association of German leasing companies (BDL) does not indicate any signs of fatigue for investment in equipment and machinery for 2007. By the end of this year the pace of investment may even accelerate.
The annual average growth rate in this respect will probably amount to about 5% in nominal terms. The forecasts for the first few months of next year also indicate robust growth of investment which is said to amount to about 5.5% in the first half of 2008.
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