Swiss Companies Expand Capacities
While rationalisation was the main investment motive for Swiss companies after the suspension of the minimum exchange rate in 2015, it has come to play a very minor role in this year’s investment decisions. Thanks to the favourable economic trend, companies predominantly plan to invest in capacity expansion. According to the current KOF Investment Survey, investments will go up 8% this year.
The companies participating in the current spring 2018 survey have confirmed their investment plans of autumn 2017. All in all, investments are set to rise by 8 per cent this year. Investment plans are focussing on plant and equipment as well as construction, but also include research and development. While construction companies are more restrained, industrial enterprises and service providers are planning substantial hikes in investment spending.
According to the survey results, investment activities are set to slow down slightly in the coming year, bringing the latest Swiss investment cycle to an end.
KOF Investment Survey
The current KOF Investment Survey was conducted among a panel of over 8,000 companies chosen to reflect the structure of the Swiss economy. The public sector, semi-public enterprises and private households are not included in the calculation of the investment figures. With a total of 3,000 companies taking part in the survey, the response rate was 38%.
Further information regarding the KOF Investment Survey is available here.