Economy boost as business investment soars

| June 30, 2010 | 0 Comments

The Office for National Statistics (ONS) today reported business investment in Britain soared in the first quarter of the year, suggesting the economic recovery is gathering pace.

According to the ONS, business investment grew 7.8% to £29.14 billion in the period - an improvement on the 6% increase initially reported, but 7.7% down on the same period a year ago.

The figure is also well below the £37.57 billion seen in the final quarter of 2007.

However, the first quarter figures represented the fastest pace of growth since 1987 and suggest the economy expanded at a quicker pace than the 0.3% previously estimated.

Today, the ONS said the third and final estimate of the UK’s first quarter GDP figures will be delayed, due to a “potential error”.

According to the ONS, the unusual move was caused by concerns over the reliability of some of the data.

Gross Domestic Product (GDP), a key measure of economic growth, is closely watched by economists as an indication of the health of the economy.

Howard Archer, economist at IHS Global Insight, comments: “The rebound in business investment in the first quarter was both impressive and encouraging. The upwardly revised performance boosts hopes that overall GDP growth could be revised up.”

The ONS will now publish its third and final estimate of first quarter economic growth on July 12.

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