The latest figures show the UK economy is continuing to improve as Business Investment rose strongly in Q4 2013, up 2.4% on the previous quarter and 8.5% on the final quarter of 2012, according to the ONS.
Gross fixed capital formation into new buildings and structures (excluding dwellings) increased by 2.5% relative to Q3 2013 and by 7.9% compared to Q4 2012.
The GfK consumer confidence index stayed at -7 in February, unchanged from January which saw the highest level since September 2007. A survey from YouGov found that inflation expectations eased to their lowest level since early 2010, falling in February to 2.2% over the next 12 months.
The Markit/CIPS Manufacturing PMI recorded 56.9 in February, up slightly from 56.6 in January. The survey indicated the fastest rate of job creation since May 2011.
A separate survey by EEF, a manufacturing association, reported that one in six UK manufacturers are ‘re-shoring’ (see separate news article as reported here) production from places such as China and Eastern Europe, citing better quality of production, but the survey didn’t question whether companies were moving production abroad.
Source: Glenigan