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Release: Business Investment, Q2 2013 Provisional Results

Released: 23 August 2013 Next edition: 26 September 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

  • The estimates in this release are short term indicators of investment in assets, such as dwellings, transport equipment, machinery, buildings and intangible fixed assets, across the UK. 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 provisional estimates of seasonally adjusted chained volume measures.

  • GFCF was estimated to have increased by £857 million to £52.4 billion (1.7%) compared with the previous quarter, but decreased by 4.8% compared with the same quarter in 2012.

  • The largest increase was in investment in dwellings, which rose by an estimated £1.5 billion (13.3%) compared with the previous quarter.

  • The only asset where investment fell in Q2 2013 compared with Q1 2013 was investment in buildings and other structures (including transfer costs), which was estimated to have fallen by £1.3 billion (-6.0%) to £19.6 billion.

  • Business investment rose by £270 million (0.9%) to £29.5 billion compared with the previous quarter.

  • The only asset or sector which showed positive growth in Q2 2013 when compared with Q2 2012 was intangible assets (0.3%).

  • An experimental dataset containing detailed industry and asset breakdowns of gross capital formation (GCF) can be found on the ONS ad hoc publication web pages. GCF includes estimates of changes in inventories and valuables as well as GFCF.

Commentary and tables on investment trends by businesses. Contains capital expenditure data for various sectors of the economy at current prices, constant prices and seasonally adjusted.

Please note that the Business Investment Timeseries Dataset has not been updated since March 2013. The estimates in that dataset were produced using the previous methodology, and therefore there are differences between the data in the Timeseries Dataset and this release. The estimates in the Reference Table in this release are the most up-to-date.

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

Earlier publication of GFCF sector and asset breakdowns

ONS has been reviewing the Business Investment release. In response to user feedback this publication presents provisional estimates of sector and asset breakdowns of GFCF for the first time. These breakdowns were previously first available in the Quarterly National Accounts and UK Economic Accounts releases in the third month of each quarter.

ONS will review this trial publication of provisional results over the coming year. The review will include an assessment of the scale of revisions to these preliminary estimates when later results are published. We would welcome feedback on the publication of these sector and asset breakdowns, and on how else the release might be improved, in either its content or presentation.

Publication of new, detailed industry and asset breakdowns of GCF

An experimental dataset containing detailed industry and asset breakdowns of GCF can be found on the ONS ad hoc publication web pages. These breakdowns, available for the first time since 2010, can be used to make international comparisons, unlike the business investment breakdowns previously published in this release. Comparable data from other EU countries can be found on the Eurostat website, under ‘Economy and Finance’.

The publication of this experimental dataset is part of the programme of continuous improvement to the UK National Accounts, which includes an ongoing review of GCF publications. ONS is considering the publication of a regular quarterly release of these GCF breakdowns and we would welcome your feedback on this dataset.

Business investment by industry and asset

ONS previously announced that the industry and asset breakdowns of business investment usually published in this release would be updated on 26 September 2013. However, priority has had to be given to meeting the UK’s legal requirements to implement significant changes to the compilation of GCF by September 2014. These changes are required under European legislation, which requires all EU countries to produce National Accounts compliant with the European System of Accounts 2010. This means that it will not be possible to publish the industry and asset breakdowns of business investment until September 2014.

ONS apologises for any inconvenience, and has published the GCF detailed industry and asset breakdowns as an alternative.

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