UK manufacturers planning fastest growth in capital investment

UK manufacturers planning fastest growth in capital investmentAccording to a new report, manufacturers in the UK are planning their fastest increase in capital investment during the year since the financial crisis began.

The growth expectation indicates that the UK economy is headed for a strong recovery. Manufacturers' association EEF and accountants BDO said that the a total of 24 per cent of companies were planning to buy machinery and equipment compared to just 7 per cent recorded in a similar survey conducted during the month of May.

According to the latest figures released, the UK economy recorded a faster than expected growth rate of 0.7 per cent during the second quarter of the year from April to June backed by strong exports.

The Office for National Statistics has revised headline growth figure from 0.6 per cent estimate to 0.7 per cent for the quarter. Business investment rose 0.9 per cent, workers' pay jumped by 2.4 per cent, Household spending rose
0.4 per cent and government spending was up 0.9 per cent.

The survey showed that it is the highest rating since 2007 and the second-highest since the quarterly survey since the survey began. EEF said that higher investment in the country would contribute to the economic growth and the next year. The survey was conducted between July 31 and August 21, and included a total of 290 companies in the UK.