Following the record falls in manufacturing business investment in the second quarter, today's data for q3 failed to bring much good news. Investment levels in manufacturing fell another 10% in the three months to September - which leaves quarterly levels of investment more than £1 billion lower than pre-recession levels.
With the Pre-Budget just around the corner, this further fall makes the case for current support for investment - in the shape of increased capital allowances - to be extended for a further 12 months to April 2011. Even for companies planning to invest in some brand spankin, productivity beating new equipment today the lead times involved could mean that companies might miss the cut off for the 40% rate - a point that EEF has been raising with Ministers and officials in the Treasury.
It's hard to ignore the lessons from previous recessions - once investment starts to fall it takes a long time for things to turnaround. Global competitive pressures will undoubtedly intensify as the economic recovery gathers some momentum - the UK can't afford to wait years for investment to return to growth.