What has driven the recent weakness of business investment?
The purpose of Bank Overground is to share our internal analysis. Each bite-sized post summarises a piece of analysis that supported a policy or operational decision.
Bank of England
Recent weak business investment appears to reflect the impact of Brexit uncertainties. The recovery of investment from the 2008 recession was in line with previous episodes until the EU Referendum Act was passed in 2015.
Well, here's one culprit