British business investment declined at the fastest pace since 2009 due to lower investment in oil sector, the Office for National Statistics showed Thursday.
Business investment declined 1.4 percent sequentially in the fourth quarter, the biggest fall since 2009. This was the second consecutive sequential fall in investment.
“Given the recent steep fall in oil prices, it might be expected that investment by the oil extraction industry might also fall, as oil production becomes less profitable,” the ONS said.
On a yearly basis, business investment grew 2.1 percent. This was the nineteenth consecutive quarter of quarterly growth compared with the same quarter of the previous year.
In the fourth quarter of 2014, business investment was estimated to be GBP 2.2 billion higher than the pre-downturn peak.
Gross fixed capital formation decreased 0.5 percent from the prior quarter to GBP 72.6 billion in the fourth quarter. This was the first fall since the third quarter of 2012.
The statistical office today confirmed the fourth quarter economic growth figures.
Gross domestic product grew 0.5 percent sequentially in the fourth quarter, in line with the estimate released on January 27. The rate of growth eased from 0.7 percent in the third quarter.
In the fourth quarter, GDP was up 2.7 percent from last year. In 2014 as a whole, GDP advanced 2.6 percent from the prior year.
The material has been provided by InstaForex Company – www.instaforex.com