The Office for National Statistics has reported that business investment for the second quarter of 2009 is estimated to be 10.4% lower than the previous quarter and 18.4% lower than the same period last year.
Declines in business investment occurred in most industries, with the quarterly fall in business investment mainly due to reduced capital spending by industries classified as private sector manufacturing (down 16.8%), private sector non-manufacturing (down 9.7%) and public corporations non-manufacturing (down 7.2%).
Within the private sector manufacturing the fall in capital spending was due to industries within food, drink and tobacco (down 20.8%), engineering and vehicles (down 24.2%) and textiles, clothing, leather and footwear (down 25%).
Within the private sector non-manufacturing there was reduced investment for other services (down 11.4), construction (down 9.1%), other production (down 5.7%) and distribution and services (down 5.6%)
The reduced capital expenditure in other services was mainly from industries classified within
Other services (down 24.9%), financial intermediation (down 15.8%), hotels and restaurants (down 15.6%), real estate, renting and business (down 8.0%) and health and social work, slightly offsetting the reduced capital expenditure (up 13.4%).
The reduced capital expenditure in other production was mainly from industries classified within electricity, gas and water (down 9.2%), mining and quarrying (down 5.6%) and agriculture and forestry, slightly offsetting the reduced capital expenditure (up 5.9%).
Compared with the second quarter of 2008, total business investment fell by 18.4%. This fall was mainly from private sector and public corporations non-manufacturing investment down 18.4% and the private sector manufacturing also down 18.4%. Within private sector non-manufacturing investment construction fell by 47.0%, other services fell by 21.4%, and other production fell by 10.7% compared with the second quarter of 2008.