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.
4 comments:
Yup. Business credit is markedly down. But the mainstream media are confident that we are well on our way to a booming recovery. Sorry, but bollox are we. Interestingly this news does not appear anywhere on the BBC News site. surprise, surprise...
Capex and expansion plans cut in a recession?
OH MY GOD who would have thought it?
Well done for being so on the ball with this one Alice......
Anonymous @02:37
I think the issue that Alice is wanting to highlight here is the magnitude of the decline; the sharpest for 43 years.
In the current year investment is 18.4% lower than the past year. Which is really horrible for corporate sectors.HSBC Credit Card Review
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