Investment boom will get Britain growing
Investment in assets that help boost output should pave the way for increases in productivity and hence growth.
There was some good news tucked away in the latest GDP report, says economist Andrew Sentance, a former member of the Bank of England's monetary policy committee, on Twitter. Fixed capital expenditure business spending on fixed assets such as factories, machinery and buildings has returned to 17% of GDP, the highest figure since the crisis. Investment in assets that help boost output should pave the way for increases in productivity and hence growth. Output per hour already seems to be recovering nicely, as David Smith notes in The Sunday Times. In mid-2017, it had been flat for a decade and has lagged the US and French figures. But in the second half of last year, it jumped by an annualised 3.5%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Inheritance tax bills exceed £500,000 for almost 10% of estates
Thousands of estates have had to pay a six figure inheritance tax bill – and the issue looks set to worsen.
-
Can gold protect you against inflation?
Inflation is on the rise in the UK. Could investing in gold protect your portfolio against rising prices?