Another worrying sign in today’s GDP report -– UK business investment contracted by 2.5% in the third quarter of the year.
It means that business investment (on, say, new machinery or expanding a factory) is over 8% below its levels before the Covid-19 pandemic began.
The ONS says: “Gross fixed capital formation (GFCF) increased by 1.1% in Quarter 3 2022, revised down from a first estimate increase of 2.5%. The latest quarterly rise was mainly driven by a boost in government investment of 17.3%, although business investment is now estimated to have fallen by 2.5% in Quarter 3 2022.
“Business investment saw notable revisions to estimates across quarters because of updated survey data.”
Business investment remains 8.1% below its pre-coronavirus pandemic level.