Business investment in the United Kingdom rose 0.5 percent in the first quarter of 2019, rebounding from a 0.9 percent fall in the previous period and beating market expectations of a 0.6 percent decline, a preliminary estimate showed. It is the first increase in business investment after four quarters of contraction, mainly due to information and communication technology, equipment and other machinery and equipment. Year-on-year, business investment went down 1.4 percent, after a 2.5 percent fall in the last quarter of 2018 and compared to market forecasts of a 2.7 percent decrease. The Bank of England, in its latest Agents’ summary of business conditions, reported that investment intentions fell sharply in manufacturing, with a modest decline in services. Political uncertainty continues to be cited as having a negative impact on investment. Private Investment in the United Kingdom averaged 1.03 percent from 1967 until 2019, reaching an all time high of 63.70 percent in the second quarter of 2005 and a record low of -33.70 percent in the third quarter of 2005.
Private Investment in the United Kingdom is expected to be -2.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Private Investment in the United Kingdom to stand at 0.10 in 12 months time. In the long-term, the United Kingdom Business Investment is projected to trend around 0.70 percent in 2020, according to our econometric models.