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Elections or oil? Why business investment continues to fall…..

By February 26, 2015March 15th, 2019Business, Business planning, Economy, News

images (6)The BBC News website has reported  that business investment in the UK has fallen for the second quarter in a row, recording the biggest fall since 2009. Business spending fell by 1.4% in the fourth quarter from the previous three-month period. The fall in oil prices has probably contributed to the fall, the Office for National Statistics commented as they released the figures today.

“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.

The annual figure still shows an increase of 2.1% over the same period one year ago, but there is a significant slowdown – the rate went as high as 11% in the summer of 2014. There is concern that overall investment by British businesses will continue to be supressed by uncertaintly over the results of the elections in May.