Did Brexit uncertainty see investment slump in q1 2016

The latest business investment figures show fashion and textiles manufacturing saw limited investment in q1 2016, the lowest reported figures since the start of the millenium and following a period of sustained growth since the recession.  Total business investment into the sector fell for the fourth successive quarter and stood  at £19m for the first quarter.  Although a traditional pattern for this quarter and mirroring manufacturing more widely, has been very prounouced and starting from an already weak position in q4.

Interestingly, this investment fall has been inspite of other positive indicators within the sector, with employment, business creation and exports all rising in recent years.  It may well be the uncertaintly concerning the lead up to the EU referendum which may have impacted on business investment decisions, which anacdotaly has been reported.

Figure 1: Q1 2016 Business Investment (£m)Business Investment q1 2016Source: Office for National Statistics

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s