Germany machinery capital formation, chain-linked index
Germany machinery capital formation, chain-linked index stood at 101.68 in 2025, according to Deutsche Bundesbank. It is one of the indicators in the National accounts (annual) table (Value · Annual), with a complete series running from 1991 to 2025. The complete series with an interactive chart, free to download.
This indicator in the National accounts (annual) table
| Indicator | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| National accounts, Domestic demand, Chain-linked index | 108.05 | 106.19 | 105.61 | 106.74 | 103.32 | 100 | 103.21 | 101.58 | 99.47 | 96.59 | |
| Gross fixed capital formation, Chain-linked index | 96.46 | 97.01 | 99.12 | 101.08 | 100.78 | 100 | 103.05 | 101 | 97.48 | 94.97 | |
| Gross fixed capital formation in machinery and equipment, Chain-linked index | 101.68 | 103.02 | 108.06 | 108.78 | 103.86 | 100 | 113.06 | 110.77 | 105.58 | 101.33 |
Understanding germany machinery capital formation, chain-linked index
Traces the pure volume of capital expenditure directed toward factory hardware, vehicles, and industrial tools by all sectors of the economy. This extracts movable physical assets from the broader investment aggregate, distinguishing them clearly from stationary buildings and intellectual property. It serves as a direct barometer for industrial capacity expansion, tracking actual units of equipment integrated into the production process rather than their underlying financial cost. The metric spans everything from agricultural tractors and transport fleets to highly specialized precision manufacturing equipment.
Deflation techniques for this category must continuously account for rapid quality improvements in electronic and automated machinery, meaning a flat numerical index could obscure significant underlying technological upgrades. This component is historically highly cyclical, making multi-year analysis necessary to filter out the inherently lumpy nature of corporate re-tooling phases. Revisions are common as detailed corporate balance sheet filings eventually replace early manufacturing shipment proxies and preliminary customs data. Analysts focus on this specific volume measure to gauge whether businesses are physically expanding their operational capabilities, independent of the supply chain bottlenecks that might temporarily inflate equipment prices.
Frequently asked questions
- Does this metric cover the construction of new factories?
- No, buildings are excluded; this isolates movable physical assets like machinery, tools, and industrial vehicles.
- Are price increases for industrial equipment factored in?
- The chain-linked approach removes inflation, showing the actual volume of hardware acquired rather than its cost.
- Does it capture intellectual property or software?
- No, intangible assets are recorded separately to keep this focus purely on physical operating equipment.