Total investment by British companies in the first quarter of 2002 plunged to its lowest level for over four years, revised official data showed today.
The Office for National Statistics (ONS) said investment in the period, at £26.556 billion sterling ($40.5 billion), was 3.1 per cent lower than the previous quarter and the lowest quarterly total on a seasonally-adjusted basis since the fourth quarter of 1997.
The first quarter investment total was 8.9 per cent down on the same period a year earlier, the ONS said.
The updated figures are likely to temper expectations that revised first quarter gross domestic product figures will be adjusted upwards tomorrow.
The ONS has reported that GDP failed to grow in the first three months of this year for the second quarter running. But most economists feel that does not tally with anecdotal evidence and expect the figures to be revised up to show about 0.1 per cent growth.
Preliminary investment figures released by the ONS last month had shown a 1.1 quarter-on-quarter and 3.4 per cent year-on-year fall in investment.
Within the manufacturing sector, investment plummeted to £3.813 billion sterling, 5.9 per cent down on the previous quarter and a 14.7 per cent drop on a year earlier.
Construction and other production investment fell by 6.1 per cent on the quarter to £3.067 billion , a fall of 6.3 per cent on a year earlier. Service sector investment fell 2.0 per cent to £19.205 billion, a 9.6 per cent drop on the year.