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European Business Cycle Indicators 4th Quarter 2016

European Commission, (2017), “European Business Cycle Indicators 4th Quarter 2016”, European Commission Publications, January 2017

The latest EU-wide Investment Survey was conducted in October-November 2016. The results indicate that euro-area and EU real manufacturing investment has risen in 2016 (by 1.2% and 3.1%, respectively) and is foreseen to increase further in 2017 (at rates of 2.4% and 2.7%, respectively). At country level, manufacturing managers assessed their investment in 2016 to have increased in all the largest Member States except Spain and Italy. For 2017, managers in Germany, the Netherlands, Poland and the UK plan to further increase their investment. Investments are expected to increase also in Spain, while managers in Italy foresee a further contraction. In France, investments are expected to remain stable. The Investment Survey also provides information on the factors influencing investment (demand, financial resources, technical, other) and asks firms to assign their investments to four categories (replacement, extension, rationalisation, other (pollution control, safety, etc.)). We report results for the EU, euro area and large Member States, broken down by main industrial groupings and size classes.

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