Will consumers be the next pillar to fall?

The last 18 months for the economy have been characterised by very weak business confidence and a lack of business investment spending. We estimate that in the year to March 2019, private investment excluding buildings contracted 0.6%, which is a sharp contrast to the 8.3% growth recorded in March 2018. We have previously pointed the finger at an increasing squeeze on business profitability as the main culprit for this drop-off in investment, although uncertainty surrounding the government’s policy agenda continues to play a part.