Business Investment Rate up to 22.2% in the Euro Area

In the fourth quarter of last year, business investment in the euro area was 22.2%, a quarter on quarter rise of 0.2%, according to Eurostat.

It is positive news for businesses in Europe, and the investment rate is now the highest it has been since the second quarter in 2012.

The gross investment rate of non-financial corporations, is defined as gross fixed capital formation divided by gross value added

The business profit share in the euro area was 40% in the fourth quarter of 2015, a rise of 0.1% compared with the third quarter of last year.

Eurostat have also found that the household saving rate has increased by 0.2% in the final quarter of last year, leaping up to 12.7%.

There was a similar pattern for the household investment rate, in the euro area this climbed up to 8.4% from 8.3%.

Although neither the households’ saving or investment rates have fully recovered from the 2008 financial crash.

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British Chambers of Commerce Says Growth to Stall

A survey conducted by the British Chambers of Commerce (BCC) has found that the UK economy is set to decline, as sales and orders, alongside confidence and investment, were “at a low ebb”.

The investigation by the BCC involved 8,500 companies, showed historically low confidence in turnover and profitability.

It also suggested that domestic sales and orders in services firms fell in the first quarter of the year, to what would be their lowest level in three year.

There was also bad news from the manufacturing sector, as it also reported a fall in domestic sales.

This will add to the growing concerns about the UK economy, as official figures found that industrial output fell by 0.5% year on year in February, which was the biggest fall recorded since August 2013.

There will be further strong indicators on the UK economy to be released this week, with producer price index figures due tomorrow morning, and critically the consumer price index numbers.

Pound Picks Up Against the US Dollar

The UK pound has started the day positively against the US Dollar, with the GBP/USD rate rising to buying over the $1.42 level,  after beginning the day purchasing just over $1.41.

Against the euro there was a similar pattern, as GBP/EUR began the day with sterling buying 1.238 euros.

Currently the pound is buying 1.247 euros, from peaking at purhasing1.248 euros this morning.

in their daily report LMAX Exchange say that the ‘Brexit’ risk continues to run high in the UK, with the most recent polls showing the two camps evenly split.

The referendum has been a major weight on the pound for the past several weeks, the forex company said, and is expected to continue to keep rallies well capped ahead of the June referendum.

Although the beleaguered pound finding some relief from broad based US Dollar selling on dovish comments from  Federal Reserve policy board setting number William Dudley, who said that there should be a gradual path to rate hikes.