Business Investment y/y: -6.8%, forecast -5.9%, pr. -4.5% (4Q '08),
-0.1% (3Q), 1.2% (2Q), 4.5% (1Q), 3.7% (4Q '07)

UK business investment fell 5.5% in the first quarter, preliminary data showed. That was a sharp contraction that outpaced the 1.5% fall in the 4th quarter. On the year investment was down 6.8%. Both figures came in below expectations and show the strains UK firms are under, with manufacturing particularly hard hit. Lower investment adds to weaker growth in the short term, while also setting up the possibility that when a rebound happens that British businesses may lack adequate capacity to meet demand.

Business Investment y/y: -4.5%, prel.-7.7%, pr. -0.1% (3Q), 1.2% (2Q),
4.5% (1Q), 3.7% (4Q)

UK business investment declined 1.5% q/q in Q4 2008, according to final data from the Office for National Statistics, revised from a previously reported 3.9% q/q decrease. Business investment fell 4.5% y/y, revised from a previously reported 7.7% y/y drop. 

Business Investment y/y: -7.7%, forecast -5.5%, pr. -0.1% (3Q), 1.2% (2Q),
4.5% (1Q), 3.7% (4Q)

From the Release: "Business investment for the fourth quarter of 2008 is estimated to be 7.7 per cent lower than the same period of last year and is 3.9 per cent lower than the previous quarter.

The quarterly fall in business investment is due to reduced capital spending by industries classified within private and public sector non-manufacturing (down 3.0 per cent). There was also a contribution from reduced capital expenditure in manufacturing (down 11.0 per cent).

The reduced investment in private and public non-manufacturing of -3.0 per cent was driven by private sector non-manufacturing other services (down 3.4 per cent), distribution services (down 5.5 per cent) and construction (down 29.8 per cent). "

Business Investment y/y: -0.1%, prel. -0.5%, pr. 1.2% (2Q), 4.5% (1Q),
3.7% (4Q)

Business Investment y/y: -0.5%, forecast -2.2%, pr. 1.2% (2Q), 4.5% (1Q),
3.7% (4Q)

Figures on business investment surprised forecasts on the upside, decreasing only 0.2%, when expectations had investment dropping by 1.8%. Still, its the 3rd quarter that businesses have scaled back investment in the face of sharply weakening demand, rising levels of spare capacity, worsening cash flows and very tight credit conditions, deteriorating profitability, and serious concerns and uncertainties about the potential length and depth of the recession.

Business Investment y/y: 1.2%, forecast 1.9%, prelim. 1.9%, pr. 4.5% (1Q), 3.7%

From the Release: "Business investment for the second quarter of 2008 is estimated to be 1.2 per cent higher than the same period of last year and 1.0 per cent lower than the previous quarter. This compares with the respective provisional estimates of 1.9 per cent and -1.9 per cent previously published.

The quarterly fall in business investment is due to reduced capital spending by industries classified within private and public sector non-manufacturing (down 0.6 per cent) and by manufacturing industries (down 4.5 per cent).

The reduced investment in private and public non-manufacturing of 0.6 per cent was driven by industries within other services (down 3.0 per cent), construction (down 12.6 per cent) and public corporations (down 8.8 per cent). This is partly offset by increases within other production (up 13.6 per cent) and distribution services (up 5.7 per cent)."

Business Investment y/y: 1.9%, forecast 3.1%, pr. 4.5% (1Q), 3.7%

Business investment fell 1.9% in the 2nd quarter compared with the first, sharper than the 0.7% fall expected by economists. With businesses facing some of the stiffer costs of raw material costs and higher energy, they are scaling back their spending on heavy equipment and other investment. Sales are expected to cool as the economy is in the midst of a serious correction. The worse than expected result here will most likely have an impact on the GDP for the 2nd quarter which will most likely have to be revised down from its initial estimate.  

Business Investment y/y: 4.5%, forecast 3.7%, pr. 3.7%

From the Release: "Business investment for the first quarter of 2008 was 1.8 per cent lower than the previous quarter and is estimated to be 4.5 per cent higher than the same period of last year.

The quarterly fall in business investment is due to reduced capital spending by industries classified within private sector and public corporations non-manufacturing. Total manufacturing investment for the first quarter of 2008 fell by 6.7 per cent over the previous quarter. This fall was entirely within private sector manufacturing investment (down 6.8 per cent) with a slight offsetting increase from public corporations."

Preliminary Version for 1st Quarter.
Provided by: Office for National Statistics

Business Investment y/y: 3.7%, forecast 5.5%, pr. 5.3%

Spending by businesses in the UK for investment took a pretty steep hit in the 1st quarter. Compared to the 4th quarter, investment was down 1.4%, and the annual pace cooled to 3.7%. Both figures were far below forecasts.

From the Release: " Business investment for the first quarter of 2008 was 1.4 per cent lower than the previous quarter and is estimated to be 3.7 per cent higher than the same period of last year. The quarterly fall in business investment of 1.4 per cent is largely due to decreased capital spending by industries classified as private sector non-manufacturing distribution (down 8.3 per cent) and by private sector manufacturing (down 5.0 per cent).

The private sector manufacturing fall of 5.0 per cent was a result of a reduction in capital expenditure by metals and metal goods industries (down 20.8 per cent), chemicals and man made fibres (down 5.1 per cent), food drink and tobacco (down 16.8 per cent) and textiles, clothing, leather and footwear (down 20.7 per cent). There were no significant offsetting increases in this category."