German industrial companies plan to increase their investments by 6% in 2016, a positive sign for an economy that has suffered from weak private investment in recent years.
This is according to the latest survey by the Munich-based Ifo institute.
Ifo said the projected 6% rise compares to an increase of 4% in 2015.
It is expected to be driven by large manufacturing firms, as smaller companies said they intended to reduce their expenditure on new buildings and equipment.
The results are based on responses from roughly two-thirds of the 2,300 companies Ifo asked about their investment plans. The institute plans to publish a breakdown of specific branches within the manfacturing sector early next year.
Germany has suffered from weak public and private investment in recent decades, prompting Economy Minister Sigmar Gabriel to set up a task force which unveiled proposals to address the problem earlier this year.
Marcel Fratzscher, the head of the Berlin-based DIW economic institute and chairman of the task force, said in April that the German government and companies were investing €100 billion a year too little, with most of the backlog in the private sector.
Since then, the government has loosened the purse strings, announcing plans to invest €13 billion in 2016 to modernise roads and bridges.
