United Kingdom GBP

United Kingdom Business Investment QoQ

Info

History

Chart

Impact:

Low

Latest Release:

Date:

Surprise:

-0.6%

Actual:

-0.5%

Forecast: 0.1%

Previous/Revision:

-2%

Period: Q1

What Does It Measure?

The United Kingdom Business Investment QoQ measures changes in the level of capital expenditure undertaken by businesses within the UK economy over a quarter. It focuses on assessing investments in fixed assets such as buildings, machinery, and equipment, which are crucial for driving production and economic growth, and is a key indicator of business confidence and future economic performance.

Frequency

This report is released on a quarterly basis, typically published approximately six weeks after the quarter's end, providing a final figure rather than a preliminary estimate.

Why Do Traders Care?

Traders pay attention to this indicator because it reflects businesses' confidence and intentions regarding future growth; stronger investment figures can lead to bullish sentiment in financial markets, influencing currencies like the GBP and boosting equities. A higher-than-expected business investment reading often correlates with economic expansion, thereby impacting forecasts for GDP growth and monetary policy decisions.

What Is It Derived From?

The Business Investment QoQ is derived from reports submitted by businesses across various sectors within the UK, utilizing data collection methods that encompass surveys and administrative data. Information is gathered from a representative sample of companies, focusing on their reported expenditures on capital goods, following established industry standards for accuracy.

Description

The Business Investment QoQ report compares the level of investment in the latest quarter to that of the previous quarter, highlighting medium-term trends in capital expenditure. This measure is pivotal for economic analysis as it signals how businesses are allocating their resources, which can have ripple effects throughout the economy and affect employment rates, productivity, and overall economic health.

Additional Notes

This indicator serves as a leading economic measure, offering insights into potential future business growth and economic trends linked to investment dynamics. It is often compared alongside other economic indicators, such as GDP growth and consumer spending, to provide a comprehensive view of economic health both nationally and in relation to global trends.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
May 26, 2016	-0.5%	0.1%	-2%	-0.6%
Feb 25, 2016	-2.1%	0.9%	1.2%	-3%
Nov 27, 2015	2.2%	1.5%	1.6%	0.7%
Aug 28, 2015	2.9%	1.7%	2%	1.2%