Another important data series published by the ONS last week was the trends for Business Investment in the final period of the year. This showed a fall of -3.2% compared to the 3rd quarter and -0.7% lower than a year earlier (4th quarter 2023). However, thanks to stronger figures earlier in the year, there was an increase of +0.8% for 2004 (over 2023).
The breakdown by industry group won’t be available until the full National Accounts are published at the end of March but we can look at the split by asset type. There are five categories, of which “ICT equipment & other machinery & equipment” (ICT&OM) is the most relevant to us – the other headings are transport equipment (which includes new aircraft), dwellings, other buildings & structures and intellectual property products.
On a seasonally adjusted basis, spending in the 4th quarter of 2024 on ICT&OM was just +0.1% higher than in the previous quarter but was -1.9% lower than a year earlier (Q4-2023). The total for 2024 was -0.2% lower than in 2023. Thanks to the flat trend for this asset type while the total fell, ICT&OM accounted for a fraction under 30% of total business investment and was exactly on this mark for 2024.
You can download the ONS Statistical Bulletin on productivity from their website at https://www.ons.gov.uk/releasecalendar (13 February) or request if from MTA.