DATA SNAP: UK Business Investment Slumped In 1Q
By Paul Hannon
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Business investment in the U.K. fell 7.6% in the first quarter from the previous quarter, and dropped 9.7% on the year, the Office for National Statistics said Tuesday.
The decline in investment was larger than the ONS had first estimated. Last month, it calculated that investment fell by 5.5% on the quarter and 6.8% on the year.
The fact that investment was weaker than thought in the first three months of the year contributed to a sharp downward revision in the ONS' estimate of gross domestic product over the period. The statistics agency Tuesday said it now calculates that GDP fell by 2.4% in the first quarter, having previously estimated that it fell by 1.9%.
The first-quarter decline in business investment was the sharpest quarterly drop since the second quarter of 1985. The ONS said investment by manufacturers fell by 4.2% from the fourth quarter, and was down 1.5% on the first quarter of 2008.
Investment by service providers outside the retail and distributive sector fell by 9.4% on the quarter and 13.2% on the year, while investment by construction companies fell by 14% on the quarter and 48.3% on the year.
-Paul Hannon, Dow Jones Newswires, +44 20 7842 9491, paul.hannon@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
June 30, 2009 04:36 ET (08:36 GMT)
Copyright 2009 Dow Jones & Company, Inc.
By Paul Hannon
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Business investment in the U.K. fell 7.6% in the first quarter from the previous quarter, and dropped 9.7% on the year, the Office for National Statistics said Tuesday.
The decline in investment was larger than the ONS had first estimated. Last month, it calculated that investment fell by 5.5% on the quarter and 6.8% on the year.
The fact that investment was weaker than thought in the first three months of the year contributed to a sharp downward revision in the ONS' estimate of gross domestic product over the period. The statistics agency Tuesday said it now calculates that GDP fell by 2.4% in the first quarter, having previously estimated that it fell by 1.9%.
The first-quarter decline in business investment was the sharpest quarterly drop since the second quarter of 1985. The ONS said investment by manufacturers fell by 4.2% from the fourth quarter, and was down 1.5% on the first quarter of 2008.
Investment by service providers outside the retail and distributive sector fell by 9.4% on the quarter and 13.2% on the year, while investment by construction companies fell by 14% on the quarter and 48.3% on the year.
-Paul Hannon, Dow Jones Newswires, +44 20 7842 9491, paul.hannon@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
June 30, 2009 04:36 ET (08:36 GMT)
Copyright 2009 Dow Jones & Company, Inc.
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