It’s only business investment which can save the economy

This is the substance of an economic forecast just released by the Ernst & Young ITEM Club. Whilst acknowledging that the UK may have been saved from a double dip recession by a ‘loose’ monetary policy, the ITEM Club believes that UK GDP growth will be a dismal 0.4% this year, before rising to 1.5% in 2013 and 2.6% in … Continue reading

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Large companies are swimming in cash, while consumers are drowning in debt

So says the Quarterly Economic forecast produced by the Ernst & Young Item Club. They forecast that UK GDP growth will be only 1.8% this year, but will rise to 2.3% in 2012 and 2.7% in 2013. Where will the growth come from? They believe that there will be a “major revival” in business spending and forecast that business investment … Continue reading

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Massive fall in business investment

Business investment in the last quarter of 2009 was 24.1% down on the same period of 2008. Not only has investment fallen by a quarter, but it is continuing to fall. The figures for the fourth quarter of last year were actually 5.8% down on the previous quarter. The fall in business investment was evident across most industries, although there … Continue reading

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Sharp fall in business investment

Just when we were seeing some positive signs of recovery it appears that business is not joining in – at least as far as capital investment is concerned. Business investment for the second quarter of 2009 is 10.4% lower than the previous quarter and 18.4% down on the same period last year, according to figures just published by the ONS. … Continue reading

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Fall in business investment makes downward revision in GDP figures likely

Business investment in the final quarter of 2008 was 7.7% down on the same period of 2007, and 3.9% down on the previous quarter according to figures just published by the Office for National Statistics. Manufacturing investment actually fell by 11% from the previous quarter and 15.7% on a year earlier. Such high figures are sure to be reflected in … Continue reading

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