| Investment shows 6.6% year-on-year increase |
|
|
| Tuesday, 18 December 2007 | |
|
Business investment for the third quarter of 2007 is estimated to be 6.6 per cent higher than the same period of last year, and 2.0 per cent higher than the previous quarter.
The revised business investment data for the third quarter of 2007 and figures on investments by insurance firms, pension funds and trusts were scheduled for release on 19 December 2007. The Office for National Statistics (ONS) said it became aware on 18 December that some of the data series had inadvertently been published on the Time Series Data section of the National Statistics website. A decision to publish the full release ahead of schedule was therefore taken by the National Statistician. Increased capital spending The ONS figures how that the quarterly rise in business investment is largely due to increased capital spending by industries classified as private sector non-manufacturing. Within this, there was increased investment within construction (up 12.7 per cent), other production (up 3.5 per cent) and other services (up 2.3 per cent) but reduced investment within distribution (down 3.7 per cent). Investment by industries within non-manufacturing public corporations rose by 9.0 per cent. Increased capital expenditure in private sector manufacturing investment was due to industries within textiles and clothing (up 76.9 per cent to £20 million), metal and metal goods (up 15.1 per cent to £49 million), other manufacturing (up 4.2 per cent to £45 million), chemicals and man-made fibres (up 2.6 per cent to £14 million) and engineering and vehicles (up 1.4 per cent to £14 million). In private sector non manufacturing investment the data shows increases in other services (£489m), other production (£138m) and construction (£96m). This increase was partly offset with a fall in distribution services (-£146m). The revised estimate of total manufacturing investment shows a rise of £41m, driven by an increase in investment from private sector manufacturing industries. Reduced capital investment in vehicles These were slightly offset with decreases in food, drink and tobacco industries (down 13.5 per cent or £88m) and solid and nuclear fuels, oil refining (down £28m or 20.9 per cent). Public corporation non-manufacturing investment showed a rise of £80m. By asset, the increase in private sector manufacturing investment was driven by higher capital expenditure on other capital equipment (up 1.7 per cent). This was partly offset by reduced capital investment in vehicles (down 13.3 per cent) and new building work (down 2.1 per cent). Compared with the third quarter of 2006, total manufacturing investment rose by 5.0 per cent and total non manufacturing rose by 6.9 per cent. Construction and other production rose by 13.0 per cent and services rose by 6.1 per cent compared with the third quarter of 2006. The revised estimate of business investment for 2006, measured in chain volume terms is £132.3 billion, showing a fall of 4.7 per cent from a fall of 4.3 per cent previously published. Insurance companies, pension funds and trusts Total net investment by insurance companies, pension funds and trusts was £30.9 billion in the third quarter of 2007, £7.0 billion higher than for the second quarter of 2007. This rise mainly reflected increased net investment of £7.1 billion and £6.3 billion in UK company securities and short-term assets, whilst net investment in other assets increased by £2.5 billion in the period. These increases were partly offset by decreases in net investment in British government sterling securities and overseas securities of £4.7 billion and £4.2 billion respectively. In the third quarter of 2007 long-term insurance funds reported net investment of £8.8 billion, £5.2 billion higher than the second quarter of 2007. Net disinvestments General insurance funds showed a net disinvestment of £0.7 billion, £0.3 billion lower than the previous quarter, while net investment by self-administered pension funds rose by £0.9 billion to show a net investment of £14.9 billion. Investment trusts reported net disinvestment of £0.3 billion in the third quarter of 2007 compared with net disinvestment of £0.1 billion in the second quarter. Net investment by unit trusts and property unit trusts decreased by £5.4 billion from £11.5 billion in the second quarter to show a net investment of £6.1 billion in the third quarter of 2007. At the end of 2006, institutions' total identified assets were valued at £2.497 trillion compared with £2.257 trillion at the end of 2005. Related articles
Related links |
Subscribe to our weekly newsletter for top jobs, news and more 
Digg it! 
del.icio.us 
Newsvine 
Reddit 
Stumble It! 
With financial market volatility in mind, the Director of Finance Online team present alternative options on which you stand to make a healthy return your investments.