German industrial companies are boosting investment in plant and equipment to ease capacity constraints driven by a recovery in demand.
In a strong sign of managers’ confidence in the economic outlook, a clutch of mainly larger companies, ranging from carmaker Volkswagen to engineering group Siemens has announced big increases in spending this year on research and development, capital expenditure, and sales and marketing.
German companies with strong exports have been swamped with orders from emerging markets such as China and India in the past year.
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