Business investment in the UK was flat at GBP 49.7 billion in the Q3 2019, matching preliminary estimates and following a 0.1% rise in Q2, which was earlier reported as a 0.4% fall. An increase in information and communication technology (ICT) equipment, other machinery and equipment, and intellectual property products (IPP) was not enough to offset a decline in transport equipment and other buildings and structures. Year-on-year, business investment went up 0.5%, first rise in six quarter, slightly below 0.6% in the preliminary figures and following a downwardly revised 0.4% drop in Q2. While, investments in transport equipment, IPP and other buildings and structures grew over this period; ICT equipment, other machinery, and equipment declined. Private Investment in the United Kingdom averaged 0.96 percent from 1967 until 2019, reaching an all time high of 51.50 percent in the first quarter of 1997 and a record low of -11.40 percent in the second quarter of 1985. source: Office for National Statistics
Private Investment in the United Kingdom is expected to be -0.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Private Investment in the United Kingdom to stand at 0.90 in 12 months time. In the long-term, the United Kingdom Business Investment is projected to trend around 0.70 percent in 2020, according to our econometric models.
United Kingdom Business Investment
In the UK, business investment is net investment by private and public corporations. These include investments in transport, information and communication technology (ICT) equipment, other machinery and equipment, cultivated assets, intellectual property products (IPP, which includes investment in software, research and development, artistic originals and mineral exploration), and buildings and other structures. It does not include investment by central or local government, investment in dwellings, or the costs associated with the transfer of non-produced assets (such as land).