High costs and a rigid labour market are driving US manufacturers away from Germany in spite of the government's efforts to attract foreign investment, according to a survey published on Tuesday.

A poll of 70 of the largest US employers in Germany, including such blue chip brands as Coca-Cola, Ford, Wal-Mart and Procter & Gamble, found that a third of these companies planned to cut their workforce and pull production capacity out of the country this year.