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Release: Business Investment, Q2 2013 Revised Results

Released: 26 September 2013 Next edition: 27 November 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 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 revised estimates of seasonally adjusted chained volume measures.

  • GFCF was estimated to have increased by £395 million to £52.6 billion (0.8%) compared with the previous quarter.

  • The largest increase was in investment in general government, which rose by an estimated £1.0 billion (14.1%) compared with the previous quarter.

  • The largest increase by asset was investment in dwellings, which rose by £1.2 billion (9.7%) to £13.2 billion.

  • Although overall GFCF increased there was a large fall in investment in other machinery and equipment, which was estimated to have fallen by £1.2 billion (-11.2%) to £9.8 billion.

  • Business investment decreased by £786 million (-2.7%) to £28.7 billion compared with the previous quarter.

  • GFCF was estimated to have decreased by 5.3% compared with the same quarter in 2012.

  • 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.

Publication of GFCF sector and asset breakdowns

ONS has been reviewing the Business Investment release and as a result a new approach has been adopted since the Q1 2013 results published on 27 June 2013. This includes the inclusion of sector and asset breakdowns for GFCF not previously available in the release.

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 GFCF detailed industry and asset breakdowns as an alternative.

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