The latest crop of Government statistics reveals rapidly increasing UK investment overseas. In 1995, UK business invested £26 billion in overseas subsidiaries and associated companies, up £6.7 billion on the previous year.
Total direct investment overseas reached £195 billion at the end of 1995. Earnings from UK investments overseas increased by 12% to £24 billion, with North America and the EU providing the lion’s share. Overseas companies earned £12 billion from their UK investments, up £2.8 billion on 1995.
Last week’s Purchasing Managers’ Index showed the manufacturing economy expanding in December for the seventh month, but less rapidly than previously. The December index was 52.5, down from November’s 54.2. A reading above 50 indicates expansion.
The latest figures from the EEF business trends survey show home demand more buoyant than exports, for the first time since early 1995, with the engineering industry gaining momentum during the fourth quarter of 1996.
Output in the last quarter of 1996 was up in 44% of firms.