Latest investment stats boost UK outlook
Investment by UK businesses in the third quarter fell much less than had been previously believed, according to official data released on Friday morning, prompting some economists to forecast that national output for that period is also likely to be revised upward.
According to the Office for National Statistics, business investment for the three months to September fell by 0.6 per cent, a much less dramatic decline than the 3 per cent drop from the second quarter initially reported.
Colin Ellis, economist at Daiwa Securities, noted that revisions to other components of gross domestic product are all pointing to signs that third-quarter growth may not have been as weak as had been previously believed. “Other things being equal, that raises the chances of an upward revision to GDP growth in the third quarter, as the stronger business investment data on the expenditure side match up with the better reading from construction on the output side of the accounts,” Mr Ellis said.
However, investment in the hard-pressed construction sector now shows a rise of 9.2 per cent on that of the second quarter of 2009, while remaining 19.6 per cent lower than it was at the same time in 2008.
Source: The Financial Times |
