UK business investment sees record fall

The Office for National Statistics (ONS) has today reported a sharp fall in business investment.

According to the ONS, business investment fell by 4.3% in the fourth quarter of 2009 to £27.3 billion – the steepest annual fall since records commenced in 1967.

Meanwhile, on an annual basis, business investment fell by a record 23.5%.

However, the figures were roughly in line with the preliminary estimate of a 5.8% quarterly fall and an annual fall of 24.1%.

Business investment is a core part of economic activity in the UK and is responsible for around one tenth of GDP.

As a result, analysts will be interested to see the third and final estimate of fourth quarter GDP growth figures – due out next month.

The ONS said: “Declines in business investment occurred in most industries. There was a larger fall in manufacturing than non-manufacturing. Private sector manufacturing had the largest fall.”

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