UK Gross Fixed Capital Formation

Menzie Chinn
By Menzie Chinn of Econbrowser
Professor of Public Affairs and Economics at the University of Wisconsin •

While UK GDP keeps on rising, forward-looking components like fixed investment — susceptible to expectations and uncertainty — have already turned down.

Why I think the UK is in a world of hurt, regardless of where Brexit goes. It’s just a matter of how bad…

Figure 1: UK Gross Fixed Capital Formation, in billions of 2000 pounds, seasonally adjusted (blue, log scale). Post-Brexit referendum period shaded orange. Source: OECD Main Economic Indicators via FRED.

So while UK GDP keeps on rising, forward-looking components like fixed investment — susceptible to expectations and uncertainty — have already turned down.

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