Germany’s industrial companies are cutting long-term investments, as executives in Europe’s biggest exporter prepare for a long global recession. Leading industrial groups such as ThyssenKrupp, Continental and Heidelberger Druckmaschinen plan to slash investments in machinery, factories or R&D, as hopes fade for a rapid rebound in global economic growth. The reduced investment plans will hit Germany’s machine and plant manufacturers, which employ more than 900,000 and form the industrial backbone of Europe’s economic powerhouse. Noting that Germany “lives off of global capex”, one analyst said such big cutbacks in spending will severely hit the economy’s industrial base.
