Commenting on the preliminary business investment figures for the second quarter of 2009, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:   

“The further sharp decline in business investment signals serious threats to Britain’s long-term recovery. In the face of weak demand and mounting financial pressure, businesses have little choice but to cut investment and stock.    

“Unless this trend can be reversed, the long-term productive capacity of the economy will be damaged, and the country will lack the necessary capital stock to sustain a recovery. This must be kept in mind when the government plans a fiscal strategy to repair the public finances. It is critical not to impair the business sector’s ability to invest and create wealth.”