Despite a positive start to the year in terms of new leasing volumes in Germany, Bundesverband Deutscher Leasing-Unternehmen (BDL) chief executive Horst Fittler has identified the projected low growth of equipment investment in Germany as a source for worry.

In Germany, leasing new business volumes increased by 10.2% year-on-year in the first quarter of 2016.

"As pleasing the results for our industry are, we cannot be satisfied. The projected growth in equipment investment is still too low to close the gap in the German economy and to secure our competitive position internationally," said Fittler.

Fittler cited economic forecasts which predict that investment in machinery, vehicles, IT and other assets will grow by 2.5% this year and 3.3% next year.

Fittler spoke about surveys on SME investment by BVR, DZ Bank and WGZ Bank which indicated the propensity to invest was at a record high.

"Hand on heart, we are far away from an investment boom," he said.

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By GlobalData

He explains that private consumption and the construction industry are currently driving the economic growth in Germany.