By Max Clarke
Net investment in the UK economy has remained steady at around £17billion for the past three quarters.
“This presents a promising picture for the UK economy, after what has been a tough few month in terms of data," commented Jeremy Cook, chief economist as World First Currency exchange.”
The investment, predominately by insurers, pension funds and private trusts peaked in recent years at more than £35 billion in Q2 2009, before plummeting to a net disinvestment of -£100 million on the second quarter 2010.
“Net investment has increased significantly in the last two quarters, after experiencing considerable lows in Q2 of 2010," continued Cook.
“We’re still not seeing figures which anywhere near the heights we saw in the second half of 2009, but there are some signs that we are returning to those levels.”
Short term asset investment rose to £11.5 billion, bucking a flat of more than 18 months, though gains have been matched by £3.4 in disinvestment in government securities following the poor performance of the sterling.
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