Although German investment in equipment shows no
particular weakness in relation to the Eurozone, it has
nonetheless been very weak in historical terms since
The current weakness of investment cannot be caused
by inadequate profitability, as the profits of non-financial
businesses are close to historic highs.
The pre-tax return on sales of German companies in 2013 was 13 percent,
the figure after tax 11 percent.3 The historic record
was achieved in 2007 when pre-tax returns reached
15 percent, after-tax returns 13 percent.