Regular readers will know that I have been banging on about the dangers of the corporate credit crunch for several weeks. Now, the FT have picked up on it.....
Investment by businesses collapsed in the second quarter of this year as the shortage of credit and the recession cut into British companies’ spending plans.
New spending by businesses on a range of investments from new building work to computer software fell by 10.4 per cent from the previous quarter, the Office of National Statistics reported, the biggest decline since 1985 excluding a blip in the data in 2005 and much worse than consensus forecast of a 3.6 per cent decline.
Investment was 18.4 per cent lower than a year earlier – the sharpest decline since records began in 1966.