United Kingdom GBP

United Kingdom Business Investment QoQ Prel

Info

History

Chart

Impact:

Low

Latest Release:

Date:

Surprise:

-1%

Actual:

-1%

Forecast: 0%

Previous/Revision:

0.4%

Period: Q4

What Does It Measure?

The United Kingdom Business Investment QoQ (Preliminary) measures the change in the value of investments made by businesses in physical assets and equipment compared to the previous quarter. It primarily focuses on capital expenditure, assessing how much firms are investing in structures and machinery, which is crucial for understanding the overall economic growth and production capacity.

Frequency

This event is released quarterly, typically providing preliminary estimates about four weeks after the quarter ends.

Why Do Traders Care?

Traders monitor this indicator because it directly influences economic growth forecasts, asset valuations, and market sentiment. A higher-than-expected figure can be bullish for the British Pound (GBP) and equities as it suggests increased business confidence, while a lower figure may result in bearish outcomes for both.

What Is It Derived From?

The business investment data is derived from a survey of businesses across various sectors in the UK, focusing on their expenditures on fixed assets. The calculation incorporates various factors, including investment in buildings, equipment, and intellectual property, often using diffusion indices to gauge business sentiment.

Description

As a preliminary report, it reflects early estimates based on data collected shortly after the reporting period concludes, which is subject to revisions in the following months as more complete data becomes available. The report typically uses a quarter-over-quarter (QoQ) comparison, allowing insights into short-term business investment trends that can indicate shifts in economic momentum.

Additional Notes

The Business Investment QoQ serves as a leading economic measure, often foreshadowing future economic activity and productivity changes. It’s crucial to compare this indicator with other related reports, such as GDP growth, to provide context about overall economic conditions.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for GBP, Bullish for Stocks.

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
Feb 22, 2017	-1%	0%	0.4%	-1%
Nov 25, 2016	0.9%	0.6%	1%	0.3%
Aug 26, 2016	0.5%	-0.9%	-0.6%	1.4%