“These figures provide welcome confirmation that business investment started to recover in the first quarter of the year, following a long period of sharp declines. But, manufacturing investment is still marginally down in the quarter, and all categories of business investment show large year on year declines.
“While big falls in investment were unavoidable during the recession, when businesses were forced to slash capital spending and stocks, it is now important to reverse this damaging trend to ensure that a sustainable recovery can emerge.
“Unless business investment continues to grow over the medium-term, UK productivity will suffer and the economy will lack the capacity to meet rising demand as the recovery gathers momentum. To promote investment, companies need interest rates to remain low for a prolonged period.”