UK business investment falls 1.3 pct in Q1

LONDON - Business investment in Britain posted its first quarterly fall for more than a year in the first three months of 2007, official data showed on Thursday.

By (Reuters)

Published: Thu 24 May 2007, 7:29 PM

Last updated: Sat 4 Apr 2015, 8:37 PM

The Office for National Statistics said investment fell 1.3 percent in the first quarter. However, the annual growth rate was 9.6 percent, albeit down from an eight-year high in the fourth quarter of 2006.

The fall was led by weaker investment in private sector services and construction. Investment in private sector manufacturing continued to rise, however.

Analysts were reluctant to read too much into the figures, noting the series can be volatile and subject to hefty revisions.

“The figures are weaker than expected but business investment has been going like a train for the past year and one decline does not necessarily point to a weakening trend,” said Philip Shaw, chief economist at Investec.

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