Business Investment Down 10.4 per cent in Second Quarter

Figures released by Office for National Statistics today showed:

• Business investment for the second quarter of 2009 is estimated to be 10.4% lower than in Q1.

The quarterly fall in business investment was experienced across most industries and mainly attributed to reduced capital spending by industries seen classified as:

• Private sector manufacturing – Down 16.8%;
• Private sector non-manufacturing – Down 9.7%, and;
• Public Corporations non-manufacturing – Down 7.2%.

Within the private sector manufacturing the fall in capital spending was due to industries within:

• Food, drink and tobacco – Down 20.8%;
• Engineering and vehicles – Down 24.2%, and;
• Textiles, clothing, leather and footwear – Down 25%.

Within the private sector non-manufacturing there was reduced investment for:

• Other services – Down 11.4%;
• Construction – Down 9.1%;
• Other production – Down 5.7%, and;
• Distribution and services – Down 5.6%.

The reduced capital expenditure in other services was mainly from industries classified within:

• Other services – Down 24.9%;
• Financial intermediation – Down 15.8%;
• Hotels and restaurants – Down 15.6%;
• Real estate, renting and business – Down 8.0%, and;
• Health and social work – UP 13.4%.

The reduced capital expenditure in other production was mainly from industries classified within:

• Electricity, gas and water – Down 9.2%;
• Mining and quarrying – Down 5.6%, and;
• Agriculture and forestry – UP 5.9%.

Compared with the second quarter of 2008, total business investment fell by 18.4%

Release: Office for National Statistics.

Note: Unless otherwise specified growth refers to a comparison between the latest quarter and the previous quarter (aka quarterly growth), figures discussed are in chained volume terms and seasonally adjusted.

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