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Productivity and investment

With business investment in the UK slowing, Paul Golden considers the impact on productivity and employment and the role of the finance function in identifying and assessing potential sources of investment.

Data from the Q3 2017 ICAEW economic forecast supports the view that many companies are struggling to make additional investment in their business (see Business & Management, October 2017). While accepting that figures are often revised at a later date, the forecast refers to negligible growth in business investment in the second quarter and predicts that investment will be flat for 2017 before falling by 1.1% next year.

Meanwhile, research from the Office for National Statistics points to a 0.4% decline in investment by private and public corporations between 2015 and 2016 (the weakest annual growth figure since 2009).

This is an extract from the Business & Management Magazine, Issue 259, November 2017.  

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