The latest release from the UK’s Office for National Statistics reveals revised results for business investment in the second quarter of 2023. The data, considered an accredited National Statistic, indicates a 4.1% increase in business investment, surpassing the provisional estimate of 3.4% growth.
Key Points:
- Business Investment Growth: Business investment in the UK experienced a 4.1% expansion in Q2 2023, a positive revision from the initial estimate of 3.4%. Notably, this growth represents a 9.2% increase compared to the same quarter in the previous year.
- Sector Contributions: The growth in business investment was chiefly propelled by the transport sector, primarily due to significant investments in aircraft. The volatility of transport investment, influenced by the high value of certain equipment, contributed to this notable uptick.
- Whole-Economy Investment: The broader measure of whole-economy investment, known as Gross Fixed Capital Formation (GFCF), increased by 0.8% in Q2 2023. This figure is revised up from the initial estimate of 0.0% growth. Whole-economy investment has seen a 4.6% growth compared to the same quarter in the previous year.
- National Accounts Revisions: The data aligns with the UK National Accounts, The Blue Book 2023, set to release on October 31, 2023. It’s important to note that data for all periods in this release are subject to revision following the National Accounts Revision Policy.
- Comparisons and Trends: Business investment, after lagging behind whole-economy investment during and post the pandemic, is now closing the gap. Negative contributions to GFCF, notably weaker dwellings investment, and delays in GFCF IPP and transport data contributed to this convergence.
- Upward Revisions: The revisions in this release are attributed to later survey data, impacting transport, intellectual property products (IPP), and information and communication technology (ICT), among other machinery and equipment.
This revised data showcases a positive trend in business investment, reflecting the resilience and recovery of the UK’s economic landscape. The upcoming release of The Blue Book 2023 is anticipated to provide further insights into the nation’s economic performance.