Business Investment
0.6% down in third quarter 2009
Total Business Investment percentage change, quarter on corresponding quarter of previous year
Business investment for the third quarter of 2009 is estimated to be 0.6 per cent lower than the previous quarter, and 19.9 per cent lower than the same period last year.
Declines in business investment occurred in most industries. The quarterly fall was mainly due to reduced capital spending by industries classified as: private sector manufacturing, which was down 9.9 per cent, and public corporations non-manufacturing, which was down 1.8 per cent. These declines were offset by an increase in private sector non-manufacturing, which was up 0.5 per cent.
Within private sector manufacturing there was a fall in capital spending. This was due to: other manufacturing being down 16.8 per cent; solid and nuclear fuels, oil refining, down 12.7 per cent; and chemicals and man made fibres, down 10.9 per cent.
Within the private sector non-manufacturing there is reduced investment for distribution services, which is down 4.0 per cent, offset by an increase in construction, up 9.2 per cent. Reduced investment was also offset by other production, up 1.2 per cent, and other services, up 1.1 per cent.
The increase in capital expenditure in other services is mainly from industries classified as financial intermediation being up 58.4 per cent. This was offset by a decline in: hotels and restaurants, down 11.2 per cent; real estate and renting business, down 10.5 per cent; other services, down 10.5 per cent; and health and social work, down 10.2 per cent.
The increase in capital expenditure for other production was mainly from industries classified within electricity, gas and water, which were up 12.4 per cent, offset by a decline in mining and quarrying, down 10.0 per cent.
Compared with the third quarter of 2008, total business investment fell by 19.9 per cent. This fall was mainly from manufacturing investment being down 29.4 per cent. The reduced investment in private sector manufacturing, down 29.3 per cent, was mainly from: solid and nuclear fuels, oil refining being down 52.0 per cent; textiles, clothing, leather and footwear, down 48.2 per cent; and other manufacturing, down 39.2 per cent.
Notes In line with the revisions policy used for national accounts this month, this publication includes annual and quarterly revisions from 2008q1 to 2009q3.
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