Tue, 21st May 2019
Business investment has declined for the third straight quarter in a row, marking the worst run in a decade.
The Office for National Statistics reported that investment has fallen by 1.1 percent for July to September compared with the quarter prior to that. This news came as a part of a series of figures from the ONS, including the balance of payment figures, and government borrowing statistics.
The ONS reported that the current account deficit, which is the difference between the money coming into and leaving the UK, has widened to £26.5 billion for the third quarter. The results were worse than expected, and compare to a £20 billion deficit for the previous three months.
The OS says that in Q3, the UK economy grew by 0.6 percent, which was the same as expected. The long-term picture remains subdued, and business investment has fallen over the last three consecutive quarters. Households have spend more than they have received for the eighth quarter in a row, which is raising questions about whether individuals will be able to keep on spending over the coming months to drive the country’s economy. There has been a fall in consumer confidence, and consumers are now more intent to save, which suggests that spending is likely to slow dramatically in the near term, although real wages should soon start to rise at a faster rate.
ONS Statistician Rob Kent-Smith said that the latest national accounts do not inspire confidence that the UK’s economy is likely to make it through the current crisis unscathed.