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Release: Business Investment, Q1 2013 Results - By Sector and Asset

Released: 27 June 2013

Contact

Louisa Nolan

Gross Capital Formation

gcf@ons.gsi.gov.uk

Telephone: +44 (0)1633 455250

Categories: Economy, National Accounts, National Income, Expenditure and Output

Frequency of release: Quarterly

Language: English

Geographical coverage: UK

Geographical breakdown: UK and GB

Survey name(s): Quarterly Survey of Capital Expenditure

Correction

Errors have been found in the sector breakdowns of Gross Fixed Capital Formation (GFCF), published on 27 June 2013.  These have now been corrected.  This correction has no impact on the estimates of total GFCF and therefore no impact on Gross Domestic Product.

The following series have been corrected in the Business Investment Q1 2013 Results – By Sector and Asset:

NPEM, KG75, KG6V, NPEK, NPEN, KG7S, KG7P, KG7M, NPEL, DFDK, KH87, KH83, GGAE, DFDV, KH9K, KH9A, DFEG, L5ZQ, L64M, L64L, L62T, L62K, L656, L655, L636, L5YQ, L64G, L64F, L62R, L62M, L64V, L64U, L634, KH7R, KH7P, RPZG, DLXP, KG79, KG6Z, TLPK, EQDT, KH9S, KH9I, EQDO, DLXJ, EQBX, EQBV, DEEP, DLWZ, DLWJ, EQBW, DEEQ, DLXI and DLWM

These errors also affect GFCF sector breakdowns published in the Quarterly National Accounts (in Table F and K2; and quarterly net lending by sector in Table I will also be affected.)  In addition, the errors impact on Table A8 of the United Kingdom Economic Accounts.  Due to the integrated nature of the accounts, quarterly seasonally adjusted data for sector breakdowns of gross fixed capital formation (P.51), total gross capital formation (P.5) and subsequent aggregate series are also affected in the following United Kingdom Economic Accounts tables: A19, A22, A22C, A26, A31, A36, A41, X2 and X7.

These publications will be corrected when next published – 26 September 2013.

ONS apologises for any inconvenience this may cause. For further information please contact gcf@ons.gsi.gov.uk

Change of Publication Date for Business Investment Industry Breakdown

ONS previously announced that in order to complete sufficient quality assurance, the industry breakdowns of business investment that would normally have been available in the Q1 2013 Business Investment Statistical Release, published on 27 June 2013, would instead be published on 31 July.

However, the quality assurance of these data is taking longer than expected, which means that it will not be possible to publish the industry breakdowns until 26 September. However, to help meet user needs for more detailed information on investment, ONS will instead release breakdowns of gross fixed capital formation (GFCF) by sector and asset in Chapter 9 of the 2013 Blue Book, published on 31 July. This will be followed on 16 August  with the publication of a new detailed breakdown of GFCF by industry, asset and product. The release will also include product and industry breakdowns for the other components of gross capital formation: changes in inventories and valuables.

ONS apologises for any inconvenience this may cause.

Key points

The key points from this release are:
  • This release adopts significant improvements to the estimation of gross fixed capital formation, leading to larger than usual revisions.

  • The estimates in this release are short term indicators of investment in assets, such as dwellings, transport equipment, machinery, buildings and intellectual property assets, across the United Kingdom. This release covers not only business investment, but asset breakdowns of total gross fixed capital formation (GFCF), of which business investment is one component.

  • All investment data referred to in this bulletin are seasonally adjusted chained volume measures.

  • GFCF was estimated to have increased by £79 million to £51.6 billion (0.2%) compared with the previous quarter. This is the first quarterly increase in GFCF since Quarter 1 2012.

  • The largest increase was in machinery and other equipment, which increased by £1.1 billion (12.0%) compared with the previous quarter.

  • Investment in private sector dwellings also rose in Quarter 1 2013 by £921 million (9.0%) compared with the previous quarter.

  • These increases were partially offset by a fall of £1.6 billion (16.6%) in investment in intangible assets, compared with the previous quarter.

  • Business investment was estimated to have decreased by £352 million to £29.2 billion (1.2%) when compared with the previous quarter.

Commentary and tables on gross fixed capital formation, by sector and asset, including business investment.

Time series data can be found in the Quarterly National Accounts Dataset.

Content from the Office for National Statistics.
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