Business Investment
10.2% down in second quarter 2009
Total Business Investment percentage change, quarter on corresponding quarter of previous year
Business investment for the second quarter of 2009 is estimated to be 10.2 per cent lower than the previous quarter and 21.8 per cent 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 15.4 per cent), private sector non-manufacturing (down 9.6 per cent) and public corporations non-manufacturing (down 7.7 per cent).
Within private sector manufacturing the fall in capital spending was due to the engineering and vehicles (down 20.5 per cent), metals and metal goods (down 20.1 per cent) and food, drink and tobacco (down 16.5 per cent) industries.
Within the private sector non-manufacturing there is reduced investment for other services (down 13.6), distribution and services (down 14.8 per cent), construction (down 4.3 per cent) which is offset with an increase in investment for other production (up 14.8 per cent).
The reduced capital expenditure in other services was mainly from industries classified as Financial intermediation (down 32.2 per cent), other services (down 18.4 per cent), real estate, renting and business (down 14.2 per cent), transport and communication (down 7.8 per cent) and hotels and restaurants (down 7.6 per cent). Health and social work slightly offset the reduced capital expenditure (up 8.9 per cent).
The rise in capital expenditure for other production was mainly from industries classified within mining and quarrying (up 25.7 per cent), electricity, gas and water (up 10.5 per cent), and agriculture and forestry (up 5.1 per cent).
Compared with the second quarter of 2008, total business investment fell by 21.8 per cent. This fall was mainly from non-manufacturing investment (down 21.8 per cent). The reduced investment in private sector non-manufacturing was mainly from construction (down 42.0 per cent), distribution services (down 26.7 per cent) and other services (down 26.4 per cent). Other production is slightly offsetting the reduced investment (up 6.3 per cent).
Notes: In line with the revisions policy used for national accounts this month, this publication shows quarterly and annual revisions from the first quarter of 2008.
Unless otherwise specified, growth refers to a comparison between the latest quarter and the previous quarter. Sometimes this is referred to as quarterly growth.
Annual growth refers to a comparison between a quarter and the same period in the previous year.
Unless otherwise specified, figures discussed are in chained volume terms and seasonally adjusted.
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Business Investment Statistical Bulletin