British business investment rose at its fastest pace in two years in the third quarter, lifting quarterly spending above 31 billion pounds ($59.4 billion) for the first time since records began in 1966.
Official data on Thursday showed business investment rose 3.1 percent in the third quarter of this year to stand 6.9 percent up on the same period a year earlier. The figures reflect growing confidence in Britain's economic prospects and confirm the Bank of England's view that business investment is picking up after a subdued performance in 2005.
"The robust rise in business investment boosts hopes that capital spending can make an extended significant contribution to growth," said Howard Archer, chief UK economist at Global Insight. Business investment has now risen for seven consecutive quarters.
The Office for National Statistics said business investment stood at 31.013 billion pounds in the three months to September, up from 30.089 billion pounds in the three months to June. Revised third quarter GDP data are due on Friday and the investment data will reinforce expectations that overall economic growth will be confirmed at 0.7 percent.
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